Morocco insurance market hits $6 billion

Int’l desk: Morocco’s insurance sector continued its steady growth trajectory in 2024, with gross written premiums reaching MAD 59.7 billion (approximately $6 billion), marking a 5.3% year-on-year increase, according to industry data and regulatory insights from the Supervisory Authority of Insurance and Social Welfare (ACAPS).

The expansion reflects sustained demand across both life and non-life segments, supported by rising middle-class incomes, regulatory reforms and broader financial inclusion efforts. Early indicators for 2025 suggest further acceleration, with market growth estimated at 7-8%, driven largely by life savings products and compulsory insurance extensions.

Non-life insurance remained the largest segment, generating MAD 32.5 billion in premiums in 2024, up 5.5% from the previous year. The life segment followed closely, growing 5.1% to MAD 27.2 billion, underpinned by increased uptake of savings-linked and retirement-oriented products.

Life insurance offerings in Morocco span a wide range of solutions, including term and whole life policies, endowment plans, unit-linked products and retirement savings schemes. Credit life and group life policies also play a significant role, particularly in supporting lending activities and employee benefit programmes.

On the non-life side, motor insurance continues to dominate, particularly compulsory third-party liability (RC Auto), alongside comprehensive coverage for accidents, theft and vehicle damage. Property insurance, including fire and catastrophe coverage, has gained importance amid rising exposure to natural risks such as floods and earthquakes. Healths, workers’ compensation, liability, marine and engineering lines further contribute to the sector’s diversification, while micro-insurance and parametric products are gradually emerging.

Morocco’s insurance market operates under a robust regulatory framework governed by the Insurance Code (Law 17-99) and overseen by ACAPS. The regulator has intensified its focus on consumer protection, transparency and fair claims handling in recent years.

Regulations require insurers to clearly disclose policy terms, exclusions and conditions, with strict enforcement of the principle of utmost good faith. Policyholders must provide full and accurate information during underwriting, as non-disclosure or misrepresentation can lead to reduced payouts or policy invalidation.

Recent regulatory guidance has also emphasised fairness in claims decisions. For example, exclusions related to driver licensing in motor insurance are only applicable if the driver was unlicensed or disqualified at the time of the accident. Additionally, claim notification deadlines for natural disasters have been extended to 60 days, offering greater flexibility to policyholders.

Several lines of insurance remain mandatory in Morocco, supporting steady premium growth and risk protection across the economy. These include motor third-party liability for all motorised vehicles, workers’ compensation and professional indemnity for certain professions such as architects and brokers.

Property insurance policies must also include compulsory catastrophe extensions covering risks such as earthquakes, floods and tsunamis. Meanwhile, mandatory health insurance (AMO) provides basic public coverage, with private insurers offering supplementary plans.

Claims activity in Morocco is heavily concentrated in motor and health segments, reflecting high traffic volumes and increasing healthcare demand. Property claims linked to fires, floods and other natural disasters also represent a growing share of payouts.

While most claims are processed smoothly, denials typically arise from late notification, incomplete documentation, policy exclusions, or misrepresentation. ACAPS continues to monitor claims practices closely, cautioning insurers against unjustified rejections and reinforcing consumer protection standards.

Claim values vary significantly, ranging from minor motor repairs worth a few thousand dirhams to large-scale catastrophe losses that can reach hundreds of millions, or even billions, of dirhams, depending on event severity and coverage limits.

Insurance premiums in Morocco are risk-based and subject to regulatory oversight, particularly in compulsory lines such as motor third-party liability, where tariffs are standardised. Other segments, including property and health, are priced based on factors such as asset value, geographic risk exposure, age and coverage scope.

Taxes and levies also influence pricing, with non-life premiums generally subject to a 14% tax, alongside additional charges such as a 1.5% contribution to the motor guarantee fund for uninsured drivers. Insurers offer discounts through no-claims bonuses and product bundling, although inflation and rising reinsurance costs continue to exert upward pressure on pricing.

Despite its steady expansion, Morocco’s insurance sector still faces structural challenges, including relatively moderate penetration rates and increasing scrutiny over claims management practices. Exposure to natural catastrophes also remains a key risk factor.