Insurance: agents & brokers expose the regulator’s projects

The insurance sector must reach a new level of development, after the severe test of the pandemic linked to Covid-19. And this by upgrading to meet customer requirements, in particular by acquiring mechanisms capable of ensuring its inevitable transition to digital. Projects have been announced by the regulator, in collaboration with the profession, to promote this necessary change, in particular the “deep” reform of the Insurance Code and the settlement of debts due to intermediaries.

The insurance sector has been put to the test during this pandemic and the way out of the crisis is still uncertain. However, the sector managed to preserve its activity. Premiums written in Non-Life grew by 1.9% in 2020 and at the end of September this year grew by 7.3%. “Today, no one can dispute that the pandemic has lifted the veil on the fragility of certain models and forced individuals and organizations to reinvent themselves. Customers have become more demanding, they are more connected. To be able to reach them, we will have no choice but to expand our distribution channels. Whether via digital or via other physical channels, such as telecom operators, payment organizations or even bank agencies,” said Mohamed Hassan Bensalah, President of the Moroccan Federation of Insurance and Reinsurance Companies ( FMSAR), during the opening session of the 5th edition of the annual meeting of the National Federation of Insurance Agents and Brokers of Morocco (FNCAM).

Yesterday in Casablanca, the FNCAM brought together practically all the elite of the sector to discuss around the theme chosen for this new edition: “A new impetus for intermediation after the crisis”. Major objective: restore the image of the insurance sector in Morocco and provide it with mechanisms capable of ensuring its inevitable transition to digital and the challenges facing the profession. Both national and international speakers shared their experiences and constructive and relevant lines of thought on the challenges facing the sector. “Amending Book IV of the Insurance Code relating to the presentation of insurance operations is also one of the major projects that the Authority will have to tackle in the near future. This revision will make it possible to put in place a regulatory framework more suited to the evolution of the distribution of insurance products, the advent of new technologies, but also to correct a certain number of shortcomings which have appeared over the years, with the effective implementation of the insurance code”, explains Farid Bensaïd, president of FNCAM.

Multichannel more coveted than ever
Looking to the future, Morocco’s insurance agents and brokers want to work to improve the penetration rate, particularly through inclusive insurance. “A multi-channel strategy is not a threat to agents and brokers, but helps to attract new customers, especially among the most vulnerable, for products that are marketed little or not at all. This is a subject that must be approached with as much lucidity as common sense. It is not a question of a choice, but of a profound transformation of our society, from which our sector cannot remain on the sidelines”.

Major issues
Numerous. The challenges of the sector require the mobilization of the entire ecosystem. Because it is first a question of remedying the problems related to the collection and repayment of premiums. “The current system deserves to be revisited in order to obtain feedback on collection in real time and repayment within very short deadlines. We will benefit from setting up a system aimed at securing the intermediary, making the information more reliable and raising the cash more quickly”, develops the president of the FMSAR. The 2nd issue is linked to the competitive pressure that drives prices down. “The provision for pricing risks, which unfortunately is slow to come out, will make it possible to moralize pricing and the race for premiums. The choice of policyholders must be based, above all, on aspects related to the quality of services and advice,” adds Bensalah. The third issue, which the profession faces and which is not the least, concerns the generalization of health insurance, a real shift for the sector. “Remote sales of insurance products do not upset practices in terms of sales, digitalization really has its place, provided you do not stay on simple products like car insurance”, explains Yassine Nabil, expert in digital.

Two projects for ACAPS
The urgency is great for ACAPS and it seems that it is on track to remedy the dysfunctions. “The relationship between insurance intermediaries and insurance companies is often altered by the problem of claims on intermediaries (…). This problem, which has persisted for years, is very consuming of time and effort on both sides, thus hindering the harmonious development of their activities”, underlined Othman Khalil El Alamy, acting president of ACAPS. To find solutions, the organization plans to carry out two projects in collaboration with the stakeholders. The first relates to the settlement of debts due to intermediaries. The second aims to find solutions to avoid this debt problem, or at least reduce its scale. ACAPS also intends to launch in the “near future” the amendment of book IV of the insurance code relating to the presentation of insurance operations as well as the “in-depth” reform of this code.


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