Cyber risks: An insurance offer is under development

«In 2022, 82% of the world’s largest insurance companies were targeted by ransomware. Morocco has reacted vigorously, adopting Law 20-05 on cybersecurity, and putting in place a national directive to strengthen the security of information systems. The aim is to create an environment of trust, where data becomes a protected asset, and not a vulnerability. The development of an insurance offer against cyber risks is also underway », said Ms. Fettah at this 11th edition, which runs until April 17.

To this end, she stressed the importance of anticipating the needs of businesses, institutions and citizens in the face of a growing threat.

Focusing on the theme chosen for this year’s event, «New technologies and AI: What opportunities for insurance? », the Minister indicated that artificial intelligence (AI) is a « tremendous opportunity »for the sector because it enables the automation of underwriting, fraud detection, the personalization of offers, and the predictive analysis of risks.

She continued: «In the United States, a car insurance company has reduced manual claims-related tasks by 70% thanks to an AI bot. Enough to make more than one portfolio manager dream. But AI goes further. In Africa, it makes access to insurance possible in the most remote areas, through mobile and digital solutions ».

In this sense, Ms. Fettah cited Kenya as an inspiring example, with mobile health insurance, which has changed the lives of millions of citizens, affirming that Morocco, for its part, is also moving in this direction, with a financial inclusion strategy that targets young people, women and rural populations.

The Minister also noted that the role of insurance is central, particularly in a context where natural disasters are becoming more frequent (floods, drought, earthquakes, etc.).

According to her, «emerging technologies, in particular satellites, drones, IoT and AI, now make it possible to predict, monitor and price risks with unprecedented precision ».

They also enable the development of parametric insurance, which automatically triggers compensation as soon as a predefined threshold is reached, added Ms Fettah, noting that this type of insurance, based on objective data, can make all the difference for farmers, craftsmen and small and medium-sized enterprises (SMEs) who need a rapid response to survive a shock.

However, while these innovations are promising, they are not without challenges, the Minister pointed out. «The integration of these technologies requires significant investments, upskilling of teams, and an evolution of the regulatory framework. It also requires ensuring data security. Because with the proliferation of sensors and platforms, the question of data governance becomes crucial », she explained.

At the same time, Ms. Fettah stressed the need to preserve the balance between personalization and mutualization. «AI makes it possible to target profiles precisely, but we must be careful not to fragment the risk to the point of excluding the most vulnerable. Inclusion must remain at the heart of our model ». The Minister felt that the insurance of tomorrow will be more agile, more digital, but it must also be more equitable, more resilient and more inclusive.

In addition, Ms. Fettah welcomed the strong African presence at this edition of the Casablanca Insurance Rendez-vous, and congratulated Ghana, which is being honored this year. «Ghana embodies a dynamic of innovation, technological agility and regional integration, in line with the vision we share for a continent geared towards the future ».

Organized by the Moroccan Federation of Insurance Companies (FMA), the Casablanca Insurance Rendez-vous, which is placed under the High Patronage of His Majesty King Mohammed VI, is an opportunity to discuss the growing role of AI in insurance, which is a constantly evolving sector.

The FMA is an association that brings together the 25 insurance and reinsurance companies operating in Morocco. Its main role is to undertake any action deemed appropriate for its members and to work in the interest of the insurance sector.