Insurance: activity has doubled in a decade

By Rachid Al Arbi on 04/20/2022 at 11:20 p.m.

Kiosk360. The activity of the insurance sector has more than doubled in 10 years. Premiums issued increased from 24 billion dirhams in 2011 to 50 billion in 2021. This article is a press review from the newspaper Les Inspirations ECO.

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The bar of 50 billion dirhams in turnover was crossed in 2021 for the insurance sector. In its April 21 edition, ECO Inspirations announces that in ten years, the premiums issued will have doubled in size. He assures that “the setback linked to the health crisis was quickly caught up in particular in the life branch. And for good reason, “it should benefit from this situation which has heightened awareness of savings, in particular to cope with the blows of life”. And to detail, “gross collection totaled 19.7 billion dirhams, including 18 billion on dirham supports. Unit-linked contracts captured 1.7 billion dirhams, up 20% over one year.

The daily also mentions ongoing transformations in life insurance whose premiums amounted to 23 billion dirhams against less than 8 billion ten years ago. They represent, according to the newspaper, 60% of the increase in sector turnover during the last decade. Life insurance was one of the driving forces behind the dynamism of this branch, largely thanks to the strengthening of bank/insurance synergies, which made it possible to better popularize insurance products in the banking networks.

The daily considers that the improvement in the penetration rate of life insurance is due to the intrinsic qualities of the product with an attractive tax system and yields which remain higher than other products in the same category. “The take-off of life insurance took place in a context of gradual decline in bond rates no longer ensuring historic returns to savers.” However, he understands that conventional contracts are costly in terms of equity. Hence a commitment to a transformation in particular for the benefit of unit-linked supports, the need for which is four times higher. “The idea is to offer more alternatives to policyholders, but also to ease the pressure on income,” says the daily.

Premiums written in non-life insurance rose from 16 billion dirhams in 2011 to 27 billion in 2021. Automobile concentrates almost half of the turnover with 13 billion dirhams of premiums written last year (7 .5 billion in 2011). “The profitability of the segment has deteriorated sharply in recent years to the point of pushing the regulator to introduce a provision for price risk to discipline the market,” notes the daily.

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