Motor insurers in Morocco have increased premium rates by an average of around 5% for mandatory auto third-party liability insurance, as part of the legislative reform of compensation for victims of traffic accidents.
The new pricing, effective from 4 August, applies to both new and renewed policies. However, contracts in effect are not affected by this increase until their expiry date.
The legislative reform provides for a gradual increase in the minimum wage used to calculate compensation, according to local media reports. The regulatory authority has set guidelines for pricing. The assessment of the impact of the new scale, based on market data, indicates an annual increase of approximately 5% over the period 2026-2030, representing a cumulative increase of "around 24% to 25%" in premiums, according to an estimate provided by the Moroccan Insurance Federation.
The reference wage, used as the basis for calculating compensation, had been frozen at MAD9,270 ($1,000) since 1984. Under the reform, the reference wage will rise to MAD14,270, representing a 54% increase, phased in over five stages.
The stated objective of the premium hike is to allow insurance companies to cope with the increased costs resulting from the revision of the amounts awarded to victims, while maintaining the financial balance of the system.
The legal basis for this revision is Law No. 70-24, published in the Official Bulletin on 29 January 2026 after its promulgation by royal decree on 22 January 2026, according to the General Secretariat of the Government. This law modernises a 1984 royal decree, which had governed compensation for victims of traffic accidents for 42 years. Under the new rules, compensation for bodily injury is based on a legal scale.