The risk-based solvency (RBS) framework for the insurance sector will be published this quarter, according to Mr Abderrahim Chaffai, President of the Insurance and Social Welfare Supervisory Authority (ACAPS).
The final text of the framework will mark the start of a compliance phase that will position Morocco as a regional leader in financial regulation.
Delivering a speech at the opening on 15 April of the 12th edition of the Rendez-Vous de Casablanca, Mr Chaffai said the implementation of the RBS framework will raise the maturity of risk management and governance practices in insurance companies.
The RBS regime requires insurers to maintain a sufficient level of capital that is proportionate to cover their risk profiles and withstand financial difficulties, supported by a sound corporate governance framework. It also prioritises supervisory resources on more risky insurers, rather than applying uniform compliance checks to all companies.
The RBS system rests on three pillars combining quantitative, qualitative, and reporting requirements.
Mr Chaffai also announced that moves to modernise the Insurance Code had entered “a very advanced phase" in the legislative process, specifying that the text of the proposed new insurance law has been submitted to the General Secretariat of the Government.