Fostering greater insurance inclusion for vulnerable groups in Morocco, with focus on women and youth.
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The African Development Bank, through the Africa Digital Financial Inclusion Facility (ADFI), has signed a grant agreement for $510,000 with the Moroccan Supervisory Authority of Insurance and Social Welfare (ACAPS), a public legal entity which oversees insurance, reinsurance, intermediaries, and social protection institutions and promotes financial education and innovation. This grant is to be used to foster greater insurance inclusion for vulnerable groups in Morocco, with focus on women and youth. Despite the healthy growth of the Moroccan insurance sector (at an average annual growth rate of 7.8%), penetration rates remain low and only a quarter of the population have car insurance, while less than 4% reported having subscribed to supplementary health insurance, home insurance, retirement or micro-insurance. This initiative aims to help overcome challenges to access and take-up of insurance in Morocco by leveraging technology to foster insurance solutions that meet the specific insurance needs of women and other targeted population groups, providing accessible, transparent and fair products. Furthermore, to support the integration and efficiency of InsurTech technologies and increase market competitiveness, traditional providers will benefit from methodological and technical support. An outcome of ACAPS' engagements with Morocco's insurance ecosystem, the design of the project was influenced by the outcomes of participatory diagnosis of the challenges faced by insurance service providers and the joint development of technology-based solutions. The project will extend the scope of the diagnosis to encompass insurance service users, ensuring that the identified solutions are as inclusive as possible. |
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The project aims to benefit the regulator, insurance companies, intermediaries and brokers across Morocco, InsurTech promoters as well as traditional insurers to reach new users and microenterprises, particularly those owned by women. The project will also provide a legal and regulatory framework that encourages innovation and will provide support in the form of information and training. |
Expected outcomes include raising awareness of the initiative and benefitting:
- Insurance regulation by the Central Bank of Morocco, Bank Al-Maghrib
- 25 insurance companies currently operating in the country
- 2,000 intermediaries and brokers
- 30 InsurTech project promoters
- About 200,000 new users (100,000 of them women)
- 30,000 microenterprises and cooperatives, at least 40% of them owned by women.
This project will promote innovation and the development of the InsurTech ecosystem, thereby creating positive ripple effects that extend beyond the financial and insurance sectors. The digitisation of insurance will enhance risk management in key sectors such as agriculture, health, transport and trade.
- Developing insurance products that are adapted to climate hazards will help to build the economic resilience of 100,000 producers in the agricultural sector.
- Expanding insurance services in the health sector could improve access to healthcare for vulnerable population groups, thereby contributing to extending universal health coverage.
- The emergence of InsurTech solutions will stimulate the creation of jobs (up to 1,000) in the fields of information technology, digital marketing and customer services for the benefit of young entrepreneurs and innovative start-ups.
- Consumers will benefit from a wider range of services accessible via digital channels. This will promote digital inclusion and reduce social inequalities. <
- Improved risk management through insurance products to boost the confidence of economic actors, thereby stimulating investment in production sectors.
These additional positive effects could strengthen Morocco's economic and social resilience and stimulate entrepreneurship, thus offering prospects for sustainable growth in the country.>
