Two issues - financial inclusion and innovation - will be highlighted when the Insurance and Social Welfare Supervisory Authority (ACAPS) looks at implementing a digital insurance distribution strategy.
The overall aim is to modernise the distribution of insurance products, without sacrificing the network of intermediaries, according to a report by Finances.
Mr Hassan Boubrik, ACAPS president, told Finances that one cannot claim to want to distribute microinsurance products while having the costs of a traditional network. He says that this is why it is necessary to open up distribution to payment establishments, telecom operators and to use mobile payments while simplifying contracts and products. The objective is financial inclusion, that is, to promote the penetration of insurance in households which have low incomes.
Another focus is on innovation and quality of services, including of traditional insurance products. "We cannot imagine in insurance operations that are handled only on paper, with tools from 30 or 40 years ago," Mr Boubrik said.
For example, in life insurance, ACAPS has directed that life insurance statements be issued quarterly on paper, except for companies that have a computer application on smartphones, made available to customers. Discussions are underway between the regulator and insurance companies to see the precise information that must appear on these statements. “We hope to resolve all this in the coming months,” said Mr Boubrik.
In the meantime, ACAPS has brought together the various players in the sector — the Ministry of Finance, the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR) and the National Federation of Agents and Brokers of Morocco (FNACAM) — to conduct a study on distribution in the digital age. This study is scheduled to be finalised by the end of the year. Then, implementation work will start.
Mr Boubrik believes that in insurance, the distribution of several products can be largely digitised, in particular motor, without sacrificing intermediaries. He said that intermediaries must also adapt by creating digital platforms and diversifying their income so as not to depend only on commissions from insurance companies. Intermediaries can provide added value in terms of advice and support for clients.