Moroccan Insurance Sector Sees Sharp Decline in Revenue Amid Covid-19 Crisis

The insurance sector is not spared by the Covid-19 crisis. Premiums issued by companies have fallen to 3.4 billion dirhams, reports L’Économiste.

"The drop in turnover was predictable... We will know by the end of the year," Bachir Baddou, the general manager of the Moroccan Federation of Insurance and Reinsurance Companies, told the newspaper.

The life and capitalization insurance turnover fell by 1.2%; savings by 4.3% (1.48 billion dirhams); non-life by -8.3% after a 65.8% withdrawal of work accidents and occupational diseases and automobile by 9.7%.

According to the same source, two major problems are weighing down the sector. These are the collection of premiums and the behavior of financial markets.

In May, the sector’s collections fell to 35%, the newspaper notes, recalling the preventive measures put in place by the Insurance and Social Welfare Supervisory Authority (ACAPS) to deal with the behavior of the sector’s financial markets, including the relaxation of provisions on unpaid premiums and temporary relaxation of certain precautionary rules.