The insurance industry has voiced serious concerns over the government's move to implement the universal implementation of the Compulsory Health Insurance scheme (AMO), which is a social security programme.
Insurers are worried because the government requires them to transfer privately held health insurance policies to the AMO, which is managed by the National Social Security Fund, according to local media reports.
Estimated losses for insurance companies and intermediaries
The insurance sector would experience disruption as a consequence of the shift of health insurance policies to the AMO, said National Federation of Agents and Brokers of Morocco (FNACAM) president Farid Bensaid. At the 8th FNACAM Annual Meeting held on 6 June in Casablanca, he said that estimates are that certain insurance intermediaries could lose up to 30% of their turnover following this shift. “It is crucial that we anticipate this change and adapt so as not to let these intermediaries fail,” he said.
Moroccan Insurance Federation (FMA) president Mohamed Hassan Bensalah warned that insurance intermediaries could lose around MAD400m ($40m) in commissions.
On their part, insurance companies stand to lose premiums of MAD4bn ($402m). Speaking at the FNACAM meeting, he said that the transfer of basic health insurance of 1,400,000 policyholders to the CNSS is not positive for the insurance industry. “I keep repeating it—this transfer will not happen without losses for all stakeholders, whether policyholders, intermediaries or insurance companies,” he said.
Mr Bensalah also said that employers and employees will significant increases in health insurance subscription fees under the AMO. He indicated that, according to professional estimates, it would be necessary to pay on average 1% more of the payroll excluding tax to switch to the CNSS, without taking into account the cost of supplementary insurance and that of death and disability coverage.
For insurers, “no less than MAD4bn in premiums will disappear, without forgetting our many employees who deal with health insurance.”, he said.
Members of the FNACAM and the FMA aired their apprehension of the change and their proposals to limit the repercussions of this change to officials of the Insurance and Social Security Control Authority (ACAPS) and the CNSS, who were present.
To compensate for the potential loss, insurance market players are diversifying their services and accelerating digital transformation. In particular, supplementary health insurance, which is not covered by AMO, represents significant potential development for the insurance sector.