Abderrahim Chaffai, President of ACAPS, was the guest, on June 24, of the fourth edition of the “Nuits de la Finance” organized by Finances News. Objective: to present the priorities of ACAPS in the framework of the new strategic plan of the Authority for 2026, unveiled at the beginning of June. Two fundamental trends are transforming the insurance sector: a digital transformation, which is gradually giving rise to new uses and new risks requiring regulatory adaptations and greater consumer protection, as well as the royal construction site of generalization of AMO, which requires support commensurate with its challenges. But this is perhaps only the visible part of the iceberg, because the Authority must support these projects while ensuringfollowing support for the development of the sector and the strengthening of its capacities.
ACAPS Strategic Priorities
For Abderrahim Chaffai, the protection of policyholders is at the heart of ACAPS’ strategic priorities. It is even the point he cites first. According to him, it is about promoting good practices within the profession, constantly improving the quality of service and contributing to greater financial education and the development of inclusive insurance. He also recalled that the insurance penetration rate in Morocco is 4%.
Additional construction sites
In addition to the Authority’s many strategic priorities, ACAPS teams are studying a number of issues that are hindering the desired development of the sector. These include the consolidation of mandatory insurance introduced by current regulations, and the study of avenues for developing life insurance, particularly savings in the current context of the capital market. The regulator has indeed noticed a decline in this important segment and is seeking to understand the causes in order to find ways to revive it.
It is certainly one of the highest in Africa and the MENA region, but it remains mainly driven by compulsory insurance. One of the objectives of the profession would be to better equip policyholders. On the regulatory and prudential side, Abderrahim Chaffai recalled the Authority’s philosophy: “We want to improve the supervision and conduct of the market. For this, we need transparent, fair and clear processes between operators.
In addition, ACAPS is a member of the Systemic Risk Coordination and Surveillance Committee with other financial sector regulators (BAM, AMMC and Ministry of Finance), and even wishes to institutionalize the management of this typology of risks by including them in the insurance code or in the law relating to the sector. As for the development of the sector, Chaffai believes that this requires a reduction in coverage gaps and support for the diversification of the insurance offering. On the digital side, there too, many projects are open, in particular with the Insurtech unit set up within ACAPS, or the publication of the circular relating to digital distribution which the sector is implementing slowly, but surely.
ACAPS has also supported some intermediaries and companies in bringing their online offers into compliance. Another strategic project relates to sustainability in the sector with, on the one hand, an insurance part which addresses transition risks. And, on the other hand, a part linked to investments in the sector called to be more responsible by paying attention to physical, liability and transition risks which will be regulated via a circular. Concerning the social security sector, ACAPS is looking at an overhaul of the mutuality model which should, according to Abderrahim Chaffai, reinvent itself and adopt a new approach. As for the royal project of the generalization of AMO, ACAPS supports the public authorities in the implementation of this major project.
SBR Update
ACAPS is also continuing the SBR (Risk-Based Solvency) normative project. A project started in 2018 and which the Authority continues to stabilize by multiplying the tests with the profession. At this stage, the companies have carried out a third series of tests for Pillar 1, known as the quantitative pillar, and the model is now stabilized, according to its president. The results of these tests show that the sector’s solvency goes from 3.5 in the current model to 2.25 under SBR, which shows that the situation remains comfortable for the market despite the new regulatory constraints. Concerning Pillar 2, linked to the governance component, the text is almost ready. It was the subject of a circular that insurance companies are already using and it is at the level of the Ministry of Finance for approval. As for the Orsa (Own Risk and Solvency Assessment) model, it is also finalized. “It has been shared with the companies. “We continue to explain it before adopting it definitively,” explains Chaffai, who concludes on the SBR component by indicating that there is also a stage to be carried out called “articulation” or how to move from S1 to S2. And to conclude: “If all goes well, the SBR system will be in place for 2026 for the 2025 accounts. Everything is studied with all the stakeholders so that this regulation is in the interest of this sector and that it is sustainable,” he insists.
To successfully complete these projects, ACAPS will maintain its efforts in terms of innovation. with a view to consolidating its position as an innovative, agile and attractive authority, and to have the resources necessary to support all issues, including international cooperation. Human resources and their quality are thus an integral part of the Authority’s strategic priorities for 2026.
Sector fluoroscopy
The sector’s turnover reached the symbolic mark of 60 billion dirhams in 2023, in sustained development for more than a decade. The CAGR (average annual growth rate) of the Life branch reached 12% compared to 5.5% for non-Life. In total, the sector posted a CAGR of 8%, well above the growth of the Moroccan economy. In addition, the sector invests massively in the economy and participates in its financing with an investment portfolio of more than 230 billion dirhams at the end of December, invested in the stock market and in interest rate products. The sector has shown good resilience to the various shocks experienced since the pandemic and continues to display a latent capital gain of 21.7 billion dirhams, which has slightly decreased with changes in the yield curve and the volatility of the stock market. But this still constitutes an undeniable safety net for the sector and its policyholders.
