News Middle East21 Jan 2021

Morocco:Analysts expect insurance industry premiums to grow this year

| 21 Jan 2021

The insurance sector is expected to show improved performance this year, according to an analysis by BMCE Capital Research.

Analysts forecast an increase in turnover in the sector this year, thanks in particular to an expected recovery in savings products as well as in the automotive branch. The recovery is tied to an anticipated improvement in the economic situation in the country, reported Eco Actu which quoted the BMCE research.

The forecast increase in written premiums is also based on:

  • The relaxation of certain provisioning rules by the Insurance and Social Insurance Supervisory Authority (ACAPS), in particular in terms of premiums or unpaid contributions by subscribers to enable the sector to cope with the COVID-19 crisis;

  • The announcement by ACAPS of the possibility of implementing new decisions to support the insurance sector, such as the postponement of the entry into force of the provision for tariff risk;

  • The expected recovery of the Moroccan stock market in 2021 should lead to an improvement in the financial results of insurers;

  • Anticipated return of unrealised capital gains by operators to a normative level in 2021 following a 50% drop at the end of June 2020 to MAD15bn ($1.7bn);

  • The possibility of recourse to Real Estate Collective Investment Undertakings (OPCIs) in order to mitigate the deterioration in the financial results.



 


 

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