Morocco - Insurance

In 1995, the government stepped in to rescue the ailing insurance industry after studies uncovered financial difficulties in a number of firms. The authorities stepped in to prevent collapses which could affect related financial services such as savings and investment, as well as the interlinked banking sector. However, in September 1995, the government abandoned its attempts to restructure five state insurance companies and put them into liquidation. The companies, then already in temporary receivership, were Compagnie Atlantique d'assurances et de réassurances, Arabia Insurance Co., Assurances la victoire, Assurances la renaissance, and Réunion marocaine d'assurances et de réassurances (Rémar). Their combined losses are estimated at up to $550 million, mostly accumulated through pay-outs on car insurance, where the high accident rate had not been adequately reflected in premiums. Outstanding policies were transferred to the state finance company, Caisse de dépôt et de gestion (CDG). A new code has since been drawn up for insurance companies establishing reserve requirements similar to those applying to the banking sector. In 2000, the insurance companies AXA-Al Amane and CAA announced a merger that created insurance giant AXA Assurance Maroc. By 2001, there was $275 million being written in life insurance premiums in Morocco.