Insurance intermediaries are asking for a grace period of at least two years to develop supplementary insurance coverage in the transition to the the mandatory health insurance system (AMO), overseen by the National Social Security Fund (CNSS).
The issue was addressed at the 10th annual meeting on 8 October of the National Federation of Insurance Agents and Brokers in Morocco (FNACAM), according to local media reports.
A crucial factor is preparing businesses and their employees for the change from private health insurance to the government-run AMO scheme.
All Moroccan companies are required to switch to the AMO. Even businesses that have previously provided private health insurance for their employees will be required to contribute to the AMO, with no exceptions. Businesses that already offer health insurance to their employees under private plans will by law have to maintain at least the same level of coverage after the switch.
The AMO scheme is designed to provide basic coverage for the population. These include employees, the self-employed and their families. This system aims to make healthcare accessible to all, regardless of social or economic status. The AMO scheme was established by law in 2002, and came into effect in 2005 to provide healthcare for formal public- and private-sector employees. The Medical Assistance Scheme (RAMED), also launched in 2005, aimed to cover those in the informal sector. In 2022, the RAMED scheme was ended so that universal healthcare would be provided under a single public health insurance system.
Impact
The insurance market is expected to undergo a restructuring, especially in the group health insurance sector. Insurers have to adapt their offerings to focus on supplementary health insurance and strengthen their collaboration with the CNSS.
Mr Farid Bensaid, FNACAM President, believes that intermediaries need at least two years to support their clients through the transition. There are also financial implications for insurance entities in terms of revenue and the bottom line.
Mr Mohamed Hassan Bensalah, President of the Moroccan Insurance Federation (FMA), indicated that insurers and their intermediaries will have to offer products for this new balance between mandatory and supplementary coverage. He said, “Let’s not just look at the premiums we’re going to lose. Let’s also look at the market we can build.”
He called for a significant strengthening of supplementary health insurance as well as death and disability benefits. He also mentioned the links to be established with the CNSS to facilitate the claims compensation process.
Some insurers have already launched individual health insurance products complementary to the AMO. More are expected to be introduced.
Timeline for switchover
At the moment, the timeline for the transition remains to be determined. A government decree must establish the duration of the transition period before the population segments concerned are switched to the AMO. The Supervisory Authority of Insurance and Social Insurance (ACAPS) is working on this issue with the Budget Directorate. The timeline will need to be discussed with the two federations, FNACAM and FMA, taking into account the impact on both beneficiaries and service providers.