With a penetration rate of 3.7% in 2017, the insurance sector in Morocco is neither exposed to the risk of specialization, nor to the risk of a probable fall in turnover, according to the 2017 report on the stability published by ACAPS, AMMC and Bank Al-Maghrib.
“The Moroccan insurance market is still dominated by four main categories, namely life and capitalization insurance, motorized land vehicle insurance, personal injury and sickness insurance, and occupational accident and occupational illness insurance”. in the report of 188 pages.
These categories alone account for 86.8% of the overall turnover of the insurance market, continues the document according to which life insurance and capitalization are the lion’s share, with 43.9% of the total turnover. business, followed by motorized land vehicle insurance (27.1%), personal injury and sickness-maternity insurance (10.1%) and occupational accident insurance (5.7%).
Their dominant nature “does not put the sector at a particular risk,” reassures the report. In addition, he continues, life insurance and capitalization continues to grow despite the downward trend in interest rates and this, given the development of bancassurance and the lack of investment alternatives.
And to conclude that the sector does not seem vulnerable to the risk of specialization, especially given the “steady” evolution of the motor liability and accidents insurance business.
Similarly, the 2017 Financial Stability Report notes that the sector also does not seem vulnerable to the risk of a decline in sales, with a penetration rate of 3.7%.
“Although this rate exceeds that of the Arab countries, it remains below the penetration rates recorded in some developed countries (France, OECD), which shows a significant potential for development for the Moroccan insurance market,” said the document, before predicting that the development potential of life insurance is “even more important”.
Note that in 2017, the Moroccan insurance sector achieved a turnover, measured by premiums issued, of 38.7 billion dirhams (4.08 billion dollars), an increase of 10.9% compared to the previous year. Combined with the acceptances of exclusive reinsurers, this amount is expected to reach $ 40.6 billion, representing a growth of 9.1%.
