The General Secretariat of the Government has released a draft Bill to amend and supplement the Insurance Code to accelerate digital transformation, strengthen policyholder protection, and broaden access to insurance for previously underserved segments of the population.
The legislative overhaul goes beyond minor technical adjustments. It aims to modernise the sector's entire value chain—from product design to distribution—while consolidating the role of insurance in financing the national economy and mobilising domestic savings, reported the newspaper Le Matin.
The draft Bill introduces several new requirements, including, in particular, the definition of premium due dates, guarantee forfeiture, commissions, and takaful investment contracts. The draft also requires insurance companies to ensure that the contracts they offer are tailored to the needs of their target customer segments. Exclusion clauses will no longer be able to render contracts meaningless, and procedures relating to claims reporting, compensation, and contract termination have been revised to be clearer and more accessible for policyholders.
Microinsurance
One key reform is the introduction of microinsurance into the Moroccan legal framework. Coverage limits and contribution levels will be set later by regulation. This measure is part of the national financial inclusion strategy aimed at expanding risk protection to underserved segments of the population.
Embedded insurance
Another major new feature is the regulation of embedded insurance. To protect consumers, the draft Bill grants subscribers a 15-day cooling-off period during which they can cancel their contract free of charge.
The proposed amendments also regulate group insurance policies taken out on behalf of third parties to cover risks related to individuals, property, or civil liability.
Insurance distribution
The proposed reform marks the beginning of a major overhaul of insurance product distribution. It establishes a specific legal framework for all distributors, including traditional intermediaries, direct sales offices, distributors of embedded insurance, and operators using digital platforms.
Intermediaries will be subject to stricter requirements regarding governance, professional competence and internal organisation. A public register of insurance distributors will be created to improve market transparency and enable consumers to identify authorised operators. Furthermore, the plan includes creating a mandatory professional association for insurance intermediaries, whose bylaws must be approved by the administration after consultation with the Insurance and Social Security Supervisory Authority (ACAPS).
Online sales
The draft amendments pave the way for the sale of insurance products through online sales systems. Companies will thus be able to offer their contracts online, provided they comply with regulations relating to consumer protection, the protection of personal data and the electronic exchange of legal information. This development responds to the rise of digital technology and the government's desire to adapt the sector to new consumer behaviours.
Reinsurance and control
The draft Bill also introduces new rules governing the activities of foreign reinsurers wishing to operate in the Moroccan market. The aim is to guarantee their ability to meet their commitments while strengthening the sector's stability.
At the same time, the supervisory powers of ACAPS are significantly expanded. The Authority will be able to conduct on-site or documentary inspections, access operators' information systems, and demand the submission of any document necessary for its investigations.
In the event of violations, a wide range of administrative sanctions is provided for, from a simple warning to the withdrawal of authorisation or the closure of operations. The text also provides for criminal and financial penalties against individuals illegally conducting insurance distribution activities or offering contracts without authorisation.
Through the reform, the government intends to adapt the Moroccan insurance sector to international standards, support its digital transformation, and promote broader coverage while strengthening policyholder protection.