This text introduces major innovations affecting micro-insurance, the distribution of insurance products, reinsurance activity and the encouragement of technological innovation.
The insurance sector reform project is reaching a new stage. Submitted to the General Secretariat of the Government (SGG) for consultation, the bill amending and supplementing Law No. 17-99 on the Insurance Code opens the way to an ambitious overhaul of the legal framework governing the market. As part of the dynamic of modernization of the financial sector and implementation of the National Financial Inclusion Strategy (SNIF), this text introduces major innovations affecting micro-insurance, the distribution of insurance products, reinsurance activity and the encouragement of technological innovation. The objective is to strengthen the protection of policyholders, expand access to insurance services and support the development of the national market in accordance with international best practices. The bill thus introduces amendments to book one relating to the insurance contract, book three relating to insurance and reinsurance companies, the amendment to book five as well as the recasting of book four relating to the presentation of insurance operations. Concerning the first book relating to the insurance contract, the bill defines the micro-insurance operation and regulates the eligible guarantees and the criteria for qualifying contracts as micro-insurance contracts. It also reduces the requirements applicable to microinsurance contracts in order to guarantee their simplicity and readability while ensuring coverage adapted to the needs of targeted populations.
As such, the project provides for the possibility of regulating the ceilings of the franchise amounts, the exclusions as well as the methods of indicating the cases and conditions of termination and suspension of said contracts, by regulatory means. Among the amendments to be made to this part of the Insurance Code we note, among others, the introduction of a new simplified termination procedure in the event of non-payment of premium when due, the relaxation of the deadlines for reporting claims and the acceleration of the compensation process as well as the establishment of mechanisms strengthening the protection of subscribers, particularly in terms of the distribution of these products. In book three, there are three major amendments. This concerns the supervision of reinsurance, by setting conditions for foreign reinsurers to operate in Morocco. Added to this is the establishment of a single professional association with compulsory membership for insurance intermediaries as well as the submission of the statutes of the Moroccan Insurance Federation and the National Federation of Insurance Agents and Brokers in Morocco to the approval of the administration after advice from ACAPS. As for Book V, the bill incorporates new provisions aimed at creating the “sandbox” principle allowing ACAPS to grant, for a maximum period of three years renewable once, exemptions from certain legal provisions the list of which is fixed by decree, with a view to promoting innovation and experimentation with new technologies in the insurance sector. Furthermore, the overhaul of book four relating to the presentation of insurance operations aims to structure and strengthen the distribution network. The aim is to promote an efficient ecosystem serving policyholders and financial inclusion. To do this, the bill places particular emphasis on the development of human capital, the strengthening of information and advice to customers, as well as adaptation to changes in consumption patterns.
