The penetration rate in the insurance sector shows a sustained improvement. At the end of 2020, it stood at around 4.1% against 3.9% a year earlier, thus placing the Kingdom in first place in the Arab world and second in Africa.
The insurance industry plays a vital role in achieving the Sustainable Development Goals, including poverty. Uninsured people are indeed more vulnerable. Any random risk can cause their financial situation to deteriorate and de facto push them into poverty. The use of traditional alternatives for risk management remains today unsuited to the changes that the world is experiencing on the social and economic level.
Experts agree that access to insurance would accelerate progress. According to them, the risk protection offered by insurance is an essential factor for sustainable growth. This is explained by the fact that the sector allows calculated risk-taking, guaranteeing rapid reconstruction in the event of disasters or disasters. The ordeal of the Covid has revealed the shortcomings to be filled in terms of insurance on an international scale. The health crisis has, in fact, strongly affected the uninsured population and has highlighted structural shortcomings at this level. Hence the importance of strengthening the sector’s contribution as a protection mechanism. Especially since the sector is full of all the assets to promote resilience and recovery from recovery efforts. In Morocco, the penetration rate in the insurance sector shows a sustained improvement. At the end of 2020, it stood at around 4.1% against 3.9% a year earlier, thus placing the Kingdom in first place in the Arab world and second in Africa. However, this rate remains below the average observed in developed countries.
It is to demonstrate the potential to win at this level. Overall, the demand for insurance in Morocco is generally generated by institutional and contractual obligations. It affects distinct categories of the population, namely city dwellers and the middle class. For the population with low or modest income, low purchasing power remains the main obstacle to their subscription to insurance programs. Added to this is the lack of information and awareness of the existing offers on the market. It is this population that is targeted by inclusive insurance. A new concept that has emerged in recent years and which encompasses all products targeting populations hitherto uninsured or poorly insured, such as microinsurance. The target population in this case is low-income households, the elderly, young people aged 18-25, people who are unemployed or working in the informal sector, housewives, etc. It is in this perspective that Morocco has worked to expand the social protection floor. This project, launched under High Royal Guidelines, fully subscribes to the achievement of the Sustainable Development Goals.
The aim is to reduce poverty and inequalities as well as to strengthen the resilience of households in the face of social risks. The Kingdom thus makes integrated social protection a national priority. An orientation that tends to consolidate social rights and guarantee social cohesion. A major reform project was launched well before the outbreak of the pandemic. In this regard, we can cite the adoption of the law on basic medical coverage which introduced compulsory health insurance and the Medical Assistance Scheme (RAMED). Added to this is the expansion of health insurance to the self-employed (non-salaried workers), the law on the extension of the pension scheme to the self-employed, the partial reform of the compensation system as well as the implementation of transfers money in favor of disadvantaged populations, especially children (Tayssir and DAAM). These efforts have been crowned by the current deployment of a national strategy aimed at generalized social medical coverage in terms of health insurance and pensions. It should be noted that the integrated public policy of social protection is articulated around three strategic objectives. The ambition is to ensure universal access to a basket of essential care, to secure a basic income for people in vulnerable situations and to provide quality social assistance services for people in difficult circumstances.