HAVEbderrahim Chaffai, President of ACAPS, was a guest on June 24 at the fourth edition of “Nuits de la Finance” organized by Finances News. Aim: Presentation of the priorities for ACAPS as part of the Authority’s new 2026 strategic plan, unveiled in early June. Two fundamental trends are transforming the insurance sector: a digital transformation, which is gradually giving rise to new uses and new risks that require regulatory adaptations and greater consumer protection, and the royal construction site for the generalization of AMO, which requires support commensurate with its challenges. But that is perhaps only the visible part of the iceberg, because the authority must support these projects and at the same time ensurefor support to develop the sector and strengthen its capacity.
ACAPS strategic priorities
For Abderrahim Chaffai, the protection of policyholders is at the heart of ACAPS’ strategic priorities. This is even the point he cites first. According to him, it is about promoting good practice within the profession, constantly improving service quality and contributing to greater financial education and the development of inclusive insurance. He also reminded that the insurance coverage rate in Morocco is 4%.
Additional projects
In addition to the Authority’s many strategic priorities, ACAPS teams study a certain number of nodes that hinder the desired development of the sector. Among these is the consolidation of the compulsory insurance established by current regulations, or the study of the possibilities of developing life insurance, especially savings in the current situation of the capital market. Indeed, the regulator has noticed a decline in this important segment and is seeking to understand the reasons in order to find ways of recovery.
It is certainly one of the highest in Africa and the MENA region, but it remains primarily driven by compulsory insurance. One of the profession’s goals would be to better equip policyholders. On the regulatory and supervisory 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 the operators.
In addition, ACAPS is a member of the Systemic Risk Coordination and Surveillance Committee with other financial sector regulators (BAM, AMMC and the Ministry of Finance), and even wants 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 the coverage gap and support for the diversification of the insurance offer. Also on the digital side, there are many projects open, especially with the Insurtech unit created in ACAPS or the publication of the circular on digital distribution, which the sector is implementing slowly but surely.
ACAPS has also supported some intermediaries and businesses to bring their online offerings into line. Another strategic project concerns sustainability in the sector with, on the one hand, an insurance component that addresses transition risks. And on the other hand, some linked to investments in the sector called for being more responsible by being aware of physical, liability and transition risks, which will be regulated via a circular. Regarding the social security sector, ACAPS is looking at a review of the reciprocity model, which, according to Abderrahim Chaffai, should reinvent itself and adopt a new approach. As for the royal project of generalizing AMO, ACAPS supports the public authorities in the implementation of this major project.
Update on SBR
ACAPS also continues the normative project with SBR (Risk-based Solvency). A project started in 2018, which the inspectorate continues to stabilize by increasing the number of tests with the profession. At present, 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 solvency of the sector increases from 3.5 in the current model to 2.25 under the SBR, showing that the situation remains comfortable for the market despite the new regulatory constraints. Regarding pillar 2, linked to the governance aspect, the text is almost clear. It was the subject of a circular that insurance companies are already using and it is at the finance ministry level for approval. With regard to the Orsa model (Own Risk and Solvency Assessment), it has also been completed. “It was shared with the companies. We continue to explain it before we adopt it finally,” explains Chaffai, who concludes with regard to the SBR aspect by indicating that there is also a step to be performed 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 being examined with all stakeholders so that this regulation is in the interest of this sector and that it is sustainable,” he. insists.
To successfully implement these projects, ACAPS will maintain its commitment to innovation with a view to consolidating its position as an innovative, agile and attractive authority and having the necessary resources to support all subjects, including international cooperation. Human resources and their quality are therefore an integral part of the agency’s strategic priorities for 2026.
Sector fluoroscopy
The turnover of the sector reached the symbolic mark of 60 billion dirhams in 2023, in continuous 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 Insurance. In total, the sector shows 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 products. The sector has shown good resilience to the various shocks experienced since the pandemic and continues to show a latent capital gain of 21.7 billion dirhams, which has fallen slightly with changes in the yield curve and stock market volatility. But this still constitutes an undeniable safety cushion for the sector and its policyholders.
