Morocco: Industry-backed solutions likely to back quake relief despite low insurance penetration

Source: Middle East Insurance Review | Oct 2023

The earthquake that struck Morocco on 8 September 2023 affected an area with low insurance penetration. However, a new commentary from AM Best notes that a parametric insurance arrangement covering part of Morocco’s National Catastrophic Event Coverage Scheme is expected to be triggered and could result in a maximum payout of MAD2,750m ($270m).

The commentary, “Industry-Backed Solutions Likely to Support Morocco Earthquake Relief Despite Low Insurance Penetration”, said that the Solidarity Fund for Catastrophic Events, which is the part of the scheme covered by the parametric arrangement, provides coverage to the uninsured and most vulnerable part of the population.

Since 2020, Morocco has had a $275m deferred drawdown option for catastrophe risk provided by the World Bank, which is expected to provide the country with immediate liquidity to address the natural disaster it faces.

Officials reported at least 2,946 people had died while more than 5,674 were injured in the 6.8-magnitude quake, which struck late the evening of 8 September in the High Atlas Mountains. About 50,000 buildings were damaged. M

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