The Moroccan insurance market avoids 700 million MAD of Covid-19-related losses

MoroccoThe Covid-19 pandemic has gravely affected the insurance sector. However, some measures adopted by the Supervisory Authority of Insurance and Social Welfare (ACAPS) have alleviated its impact. In fact, those measures are believed to have avoided 700 million MAD (76 million USD) of losses to the market Some of which include:

  • Softening prudential rule
  • Granting subsidised loans and aid to intermediarie
  • Extending motor insurance certificates
  • Teleworking

The greatest risk for the Moroccan insurance market is generated by the financial market. The significant drop in the stock market at the beginning of the health crisis has strongly disrupted insurers. In order to deal with this situation, more flexible prudential rules were adopted.

Maintaining the prudential rules of pre-Covid-19 would have led to a 25% drop in the insurers' results. According to ACAPS, the pandemic risk coverage is rare in Morocco; as seldom do insurance contracts include business interruption clauses related to that type of risk.

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