The insurance sector in Morocco has agreed on more assistance to be given to the most vulnerable insurance intermediaries to help them tide over the COVID-19 pandemic.
Around 700 agents and brokers who have reported the smallest commercial performance, measured by their turnover, stand to be beneficiaries.
The Moroccan Federation of Insurance and Reinsurance Companies (FMSAR) and the National Federation of Insurance Agents and Brokers in Morocco (FNACAM), in a joint statement, said that support and assistance are to be given to these intermediaries, in consultation with the Insurance and Social Insurance Supervisory Authority (ACAPS).
This new assistance measure consists of a lump sum grant of MAD12,000 ($1,248) to any agent or broker appearing in the list of 700 smallest intermediaries, excluding those which have been in operation for more 10 years and those which are in litigation with the companies with which they collaborate.
This lump sum subsidy is intended to help the intermediaries get through this difficult period and to enable them to continue operations and deliver customer service.
This subsidy will be granted directly by insurance companies to their general agents who appear on the list of 700 intermediaries and by the FMSAR via Fnacam for brokers which appear on the same list.
A monitoring committee made up of representatives of the two federations will oversee the scheme and ensure its smooth implementation.
The new support measure is in addition to the distribution network support measures already in place to counter the effects of the pandemic. The original package of measures includes granting a loan capped at MAD100,000 at a subsidised interest rate.