Auto Insurance Premiums Set to Drop as Lockdown Reduces Road Accidents

The lockdown, despite everything, has its share of advantages that are difficult to perceive. L’Économiste notes for example that "the number of road accidents fell by 60% during the first weeks of the lockdown, even if for some time now, the non-compliance with travel restrictions has led to an increase in traffic" and consequently, road accidents. This is due to a "certain weariness" of Moroccans after more than 45 days of confinement, adds the daily.

However, the same source states, the lockdown "has benefited insurers who have seen claims related to accidents decrease". This has allowed them to grant some facilities, including "a moratorium for the renewal of contracts that expired between March 20 and April 30". Similarly, "a reduction in the auto premium for individual clients" is being considered. It concerns "motorists with valid insurance during the lockdown period". The discount will be calculated based on the duration of the state of emergency. "Except for an extension beyond May 20, the rebate will therefore be granted for two months of insurance," specifies the newspaper, which indicates that "the details of this measure will be detailed shortly and the system should be operational by early June".

According to the same source, "automobile insurance accounts for more than a quarter of the sector’s turnover, with 12 billion dirhams in 2019. While premiums increased by 2% to 4 billion dirhams in the first quarter, this increase hides a 10% drop in activity in March, including a 15% drop in motor liability premiums. Added to this is the high level of arrears, which is around 6 billion dirhams".