The Insurance and Social Insurance Supervisory Authority (ACAPS) has an initial goal of covering 50% to 60% of homes when it introduces affordable mandatory home insurance, an initiative currently under consideration, according to the President of the regulatory agency, Mr Abderrahim Chaffai.
Speaking at an insurance industry meeting last week, he said that such widespread coverage would strengthen insurance compensation after an earthquake or flood and reduce reliance on public disaster relief.
Giving an update on the work being done by ACAPS, he said that the liberalisation of criteria for calculating motor vehicle liability insurance premiums is planned to take place in the first half of 2027. For individuals, premiums are currently based primarily on the vehicle's horsepower and fuel type. ACAPS has identified other variables that would allow for a better assessment of risk, with the aim of also encouraging prevention. The initial step will be to broaden the criteria before any further adjustments. ACAPS is also planning to roll out QR code-based motor insurance policies starting on 1 July 2027.
ACAPS also intends to consolidate the numerous professional liability obligations scattered throughout the regulations specific to each profession. Their gradual integration into the Insurance Code, over a period of at least five years, would allow for the establishment of minimum coverage levels and the regulation of deductibles and exclusions, ensuring that a mandatory contract provides genuine protection.
Insurance inclusion is still hampered by price and trust
The insurance penetration rate in Morocco is 3.7%, but this indicator is boosted by mandatory insurance schemes. Purchasing power, a lack of product awareness, the complexity of the insurance application process, and a lack of risk perception are hindering demand. ACAPS is planning a survey to assess how these obstacles are evolving.
Export credit insurance
When questioned about financing for exporters, Mr Chaffai mentioned the creation, in conjunction with the government, of a credit insurance product covering non-payment in 15 identified African markets. The mechanism combines reinsurance and a government guarantee, with an initial budget of MAD100m ($10.2m). However, the challenge is to ensure that businesses can effectively benefit from it.
Climate, cyber risks and AI
At the same time, ACAPS is collecting information to prepare for more regulations concerning climate and cyber risks, down to the level of insurance companies’ boards of directors.
The increasing use of artificial intelligence in customer experience also calls for oversight of the advice provided and data protection. The regulator is studying AI use and developing a tool to monitor online insurance offers, which is expected to be launched in the coming months. Internally, a shared database will be established to modernise oversight, with a target date of February 2027 for the database to be operational.