LMorocco is at the dawn of a major transformation of its health system with the generalization of Compulsory Health Insurance (AMO). This ambitious project, which aims to extend medical coverage to the entire population, provokes contrasting reactions within the insurance sector. If this reform, planned for almost twenty years, is hailed as a major social advance, it also raises serious concerns about its economic impact on insurance companies and intermediaries.
Indeed, the switch of private sector policyholders, the “population 114”, to the National Social Security Fund (CNSS) represents a considerable shortfall for market players. Insurers could lose up to 4 billion dirhams in premiums, while brokers would see their commissions cut by 400 million dirhams. Some intermediaries, whose portfolio is heavily focused on health insurance, risk losing up to 30% of their turnover, threatening their survival.
During the 8th annual meeting of the National Federation of Insurance Agents and Brokers of Morocco (FNACAM), held in Casablanca, Farid Bensaid, president of the Federation, warned of the expected significant losses: “Our sector will go through a turbulence zone. Nearly 30% of the turnover of certain brokers and agents risks disappearing overnight,” he said. For his part, Mohamed Hassan Bensalah, president of the Moroccan Insurance Federation (FMA), underlined the scale of the challenge: “the transfer of basic health insurance for our 1,400,000 policyholders to the CNSS is not pleasing for our sector. This transfer will not happen without damage for all stakeholders.”
Supplementary insurance: a lifeline?
Faced with this upheaval, insurance intermediaries are looking for solutions to ensure their sustainability. The diversification of their activities appears to be a necessity. Supplementary insurance, which covers costs not covered by AMO, represents a development opportunity for the sector. Insurance professionals are also calling for a review of commission rates to compensate for losses linked to the generalization of AMO. They also ask the regulator to open new services to allow them to diversify their offer.
Farid Bensaid insisted on the need to postpone the date of entry into force of the switch to AMO to 2029, not to provide too many benefits in the AMO to leave room for complementary insurance, and to exempt the latter from VAT. He also requested a review of commission rates for intermediaries and the digitalization of AMO management. However, Hassan Boubrik, Director General of the CNSS, rejected the idea of extending the deadlines: “A five-year deadline to make this long-awaited switch to AMO does not make sense. Opting for such a delay gives the impression that we are saving time to the detriment of the major reform of the generalization of social coverage,” he said.
Towards new opportunities
Despite concerns, authorities and professionals agree on the need to diversify the activities of the agent and broker network to compensate for future losses. Abderrahim Cheffai, president of the Insurance and Social Security Control Authority (ACAPS), placed emphasis on innovation: “We are working with all stakeholders to evaluate the impact of this shift to the insurance sector. The objective is to prepare for this reform by proposing solutions to develop supplementary health insurance.
In addition, FNACAM and the FMA are exploring avenues such as compulsory civil liability for homes and new services to meet the evolving needs of the market. Mohamed Hassan Bensalah insisted on the need not to move away from the core business: “we are specialists in risk management, and our networks must remain oriented towards the development of our products”.
