Morocco's insurance market is one of the most developed in the Middle East and Africa regionand the outlook for the life and non-life sectors is positive. A return to robust economic growth from 2017 -alongside a stable fiscal situation and expectations the currency will strengthen - feed into quite bullishforecasts for the market, particularly for the non-life sector. The prospects for Algeria's underdeveloped lifeinsurance market are less alluring, although far from negative. Currency weakness and governmentausterity look likely to cap premium growth at the mid-single digits in local currency terms and low singledigits in USD terms.
Key Updates And Forecasts
In Morocco, the insurance sector is facing significant challenges with a rapid increase in the number ofagents, lower commissions, high levels of competition, low levels of skills among brokers and risinginsurance arrears being cited as the main issues facing companies. The introduction of electronicdistribution networks has proceeded at a slow pace, largely because of the inability of customers to affixan electronic signature to an insurance policy. An amendment to the Insurance Code, being adopted in2017, will enable a fully electronic service. This could increase premiums without fuelling a rise inagents and brokers. Despite the increase in competition, the insurance sector is still extremelyconcentrated, with only 17 companies currently registered as members of the Fédération Marocaine desSociétés d'Assurance et de Réassurance (FMSAR - the trade association). The life and, to a lesser extent,non-life segments are highly consolidated.
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