More measures promoting inclusive insurance will be introduced in the next amendment to the Insurance Code, according to Mr Mohamed Benchaaboun, Minister of Economy and Finance at the 7th Casablanca Insurance Rendezvous organised by the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR).
Speaking on the opening day of the Rendezvous, he said that the goal is to further regulate new insurance products for which incentives could be granted to promote inclusion. The event, held virtually on 31 March and 1 April, had for its theme, "Inclusion in insurance and resilience to pandemics”.
According to a report in Morocco Weekly, Mr Benchaaboun said that the question which needs to be addressed is how the insurance industry could contribute to financial inclusion and how to increase resilience in the face of crises.
He said, "Inclusive insurance, and more particularly microinsurance, constitutes one of the main levers insofar as it makes it possible to reach even the most disadvantaged, who are the most vulnerable to risks.”
In this context, a second meeting of the National Financial Inclusion Council is set to be held to bring together all the stakeholders, public and private, that are invested in the inclusion strategy, the minister said.
During this meeting, several measures will be deliberated. Some measures concern the insurance sector and aim to promote inclusive insurance, which can develop rapidly by relying on new distribution channels, such as payment establishments, and digital or mobile payments, the minister said.
New risk coverage regimes
Mr Benchaaboun also revealed that work is underway at the level of the Ministry for the establishment of new insurance schemes against emerging risks, such as pandemics, cyber risks and drought.
"We are already working on extending this regime to cover the population against pandemics or other emerging risks such as cyber risks or risks induced by climate change such as drought," he said.
He also said, “The insurance sector is the main partner on which we are counting for the completion of this project, like the public-private partnership which resulted in the establishment of the catastrophic risk coverage plan.” He pointed to the launch in 2020 of the insurance scheme against the risks of catastrophic events, such as earthquakes and floods.
The minister stressed, “The COVID-19 pandemic has shown us that we can no longer afford to overlook risks because the probability of their occurrence is low or the priority is given to economic development without taking into account its sustainability. The damage caused directly and indirectly by climatic disasters is very costly and must be integrated into our development model.”