News Middle East17 Sep 2020

Morocco:New credit insurance broker sets ambitious business goal

| 17 Sep 2020

A new entity specialising in credit insurance aims to capture a market share of around 40% in credit insurance broking business next year.

Prevas ACC, launched by the insurance consulting and brokerage firm Prevas, is already managing a portfolio of MAD25m ($2.7m) under a management mandate, Mr Tawfik Benzakour, CEO of the new company, told Today.

Mr Benzakour who is a former CEO of Euler Hermes Acmar, said that the goal of Prevas ACC is to meet the growing demand from companies in Morocco for financial protection against the risk of non-payment of receivables in inter-company business. This is in the wake of increasingly long payment terms and the economic situation.He said, “We found that, in Morocco, credit insurance intermediation and brokerage were almost invisible and generally when we look at the Moroccan intermediation market we find that there were almost no intermediaries specialising in credit insurance and expertise.”

“So we decided to embark on this intermediation branch,” he added.

He said that currently, there are four big credit insurers: Euler Hermes Acmar, Coface, Smaex and Axa Credit. As a credit insurance broker, Prevas ACC will support its clients, that is, to advise them in the placement and management of their credit insurance contract.

He added, “The pricing of an insurance policy is done by the insurer and, therefore, depending on the risk quality of our clients' portfolio and depending on their insurable turnover, the insurer will ask in return for an insurance premium that will compensate for this risk taking. As experts, we will be able to verify whether cover is adequate and whether there is indeed a balance between the risk compensation and the risk itself, and that this would be favourable to our clients.”


 

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