Moroccan Insurance Sector Faces 4.7% Decline Amid COVID-19 Crisis

This double supply and demand shock caused by the abrupt halt of the economy during the confinement period is at the origin of the serious consequences on the insurance sector, notes l’Economiste.

According to data from the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR), premiums issued at the end of May by the companies show a 4.7% decline to 3.4 billion dirhams, compared to 3.6 billion a year ago. For the president of the FMSAR, the decline in turnover was foreseeable.

According to the same daily, the ills affecting this sector would also be linked to the decline in collections and the caution of financial markets. Due to the crisis, collections have collapsed with a collection rate not exceeding 35% in May. Several formal notices to a large number of policyholders were delayed by the confinement period, the newspaper reports, awaiting a catch-up effect on premium collections in the coming months.

However, the gloom of the economic situation has not impacted the performance of life and capitalization operations, despite a sharp decline for the fourth consecutive month and a business volume down 1.2%. As for the non-life branch, premiums issued fell by 8.3% due in particular to a 65.8% decline in occupational accidents and occupational diseases.

To prevent the consequences on the financial balances of the sector, easing measures have been taken concerning "provisions on unpaid premiums and contributions issued between October 1, 2019 and December 31, 2020. According to l’Economiste, the Insurance and Social Welfare Control Authority (Acaps) has decided to grant, at the time of renewal, between June 1, 2020 and May 31, 2021, "a discount provided that the vehicle has been insured during the confinement period".