The Insurance and Social Security Control Authority (ACAPS) called on the services of ARM Consultants to carry out a feasibility study on the introduction of compulsory home insurance. This approach is part of a global vision of protection against risks linked to housing and modernization of the insurance framework in Morocco.
This study marks a crucial step in efforts to improve the resilience of households and the real estate sector. Despite the significant advances made in access to housing in Morocco, multi-risk home insurance remains largely underused, in particular for housing acquired without bank financing. The Al Haouz earthquake, which occurred in September 2023, highlighted the vulnerability of Moroccan households, many of whom found themselves without protection from the costs caused by the disasters.
A strategy focused on international best practices
ARM Consultants, a firm recognized in the field of actuarial engineering, is responsible for carrying out this in-depth study on several aspects of the project. The main objective is to assess real needs in terms of home insurance, to take stock of the offers available on the Moroccan market, and to draw inspiration from international experiences to develop a strategy adapted to the national context.
The diagnosis will also focus on the risks associated with the use of homes and will take into account the economic and social impacts of a possible insurance obligation. Among the avenues considered, regulatory adjustments and control mechanisms are being studied in order to ensure smooth and inclusive implementation of this measure.
A lever to modernize the insurance sector
This initiative promises to strengthen citizens’ confidence in the insurance system while stimulating the growth of the sector. By making home insurance compulsory, ACAPS intends to reduce the economic consequences of natural disasters, improve the resilience of housing, and guarantee better protection for households.
With an appropriate legislative framework and a clear roadmap, this reform could not only transform the insurance landscape in Morocco, but also position the country as a regional model in terms of risk management and social security. By aligning its practices with international standards, Morocco is once again showing its determination to modernize its institutions and protect its citizens.
It should be noted that on the Moroccan market, home insurance is offered in the form of guarantees grouped together in so-called multi-risk home products. The 13 approved insurance companies, including 4 operating in the “Takaful” sector, provide packages covering various risks likely to affect housing or its contents.
Among the main guarantees are those linked to fire, water damage, infiltration, broken glass and even theft. These products not only provide protection against direct damage, but also include liability coverage. This intervenes to compensate third parties, owners or neighbors in the event of damage caused by the insured. Some companies have also introduced microinsurance solutions in order to democratize access to this coverage and target a broader clientele.
However, despite the diversity of the offer, the subscription rate for comprehensive home insurance remains low. This observation persists although certain financial institutions, particularly in the context of traditional or participatory real estate loans, impose this insurance as a precondition for granting financing. According to ACAPS, this situation reflects the need to make households more aware of the advantages of these guarantees to better protect their assets and limit financial risks.
