News Middle East11 Jun 2020

Morocco:Insurance industry sees 3rd consecutive monthly fall in premiums in April

11 Jun 2020

Premiums generated by insurance and reinsurance companies in Morocco fell by 12.1% to MAD3,546.2m ($368m) in April 2020 compared to the corresponding month in 2019, according to data published by the Insurance and Social Insurance Supervisory Authority (ACAPS).

The decline in April was the third monthly year-on-year fall in premiums this year. Premiums generated by the insurance industry in Morocco reached MAD3.08bn in March 2020, down 13% compared to March 2019. Premiums in February fell by 8.8% to MAD3.5bn.

The performance of the insurance sector is summarised below (figures in MAD m):

Month

    Life insurance

Non-life insurance

Total

Apr 2020

1,342.0

2,204.2

3,546.2

Mar 2020

1,407.1

1,673.3

3,080.4

Feb 2020

1,533.7

1,971.0

3,504,7

Jan 2020

2,490.5

5,132.4

7,623.9

Apr 2019

1,670.2

2,364.5

4,034.7

Mar 2019

1,701.5

1,840.8

3,542.3

Feb 2019

1,964.8

1,870.9

3,835.7

Jan 2019

1,616.6

4,878.6

6,495.2

The premiums written in life insurance decreased by 19.7% year-on-year to MAD1.3bn in April, due to a fall of 25.1% in savings products to MAD962m and a plunge of 27% in life protection insurance to MAD223m.

The non-life branch recorded premiums of MAD2.2bn in April, down by 6.8% compared to April 2019. One factor behind this was the drop of 22.6% in the automotive sub-branch to MAD932m.

The financial performance of the insurance industry has been affected by difficulties caused by the COVID-19 pandemic.

The World Bank has forecast that the economy in Morocco would contract by 4% in 2020, after growth of 2.5% last year due to the coronavirus outbreak. Morocco’s Minister of Economy, Finance, and Administration Reform, Mohamed Benchaaboun said that for the first four months of this year, exports fell by 61.5% while imports plunged by 37.6%. The tourism sector saw revenue plummet by 60%.

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