Kingdom
Insurance: A Sector in Full Transformation
Continually transforming, the sector continues to show strong fundamentals, driven by both the Life and Non-Life branches. Several reforms have been implemented, and more are to come.
The insurance sector once again confirms the solidity of its fundamentals and demonstrates continuous growth momentum. By the end of the first half of this year, premiums issued amounted to 35 billion dirhams (Billion MAD), a 7% increase compared to the same period in 2024.
This performance reflects the market players’ ability to keep pace with evolving coverage needs, in an economic environment marked by persistent uncertainties.
The growth of the Life branch is one of the driving forces behind this expansion. Driven by both dirham-denominated savings products and the strong surge in unit-linked contracts, it recorded an 8.1% increase, bringing the premium volume to nearly 15 Billion MAD.
Thus, dirham-denominated savings, the traditional pillar of the sector, continues a steady evolution with a 6.3% growth to reach 12.1 Billion MAD. A notable fact of the semester: unit-linked products showed a remarkable growth of 63.5% to reach 889 Million MAD.
Death insurance, for its part, generated 1.86 Billion MAD, a slight increase of 2.4%. This illustrates a shift in policyholders’ appetite towards placements more oriented towards financial performance.
The Non-Life branch proves to be equally robust. With 20 Billion MAD in premiums, a 6.2% increase, it relies mainly on the vitality of the automobile market, whose premiums rose by 5%, reaching 9.1 Billion MAD.
Personal accidents, including sickness, increased by 5.4% to 3.1 Billion MAD. Furthermore, the AT & MP (occupational accidents and diseases) segment showed growth of 6.1%, to 1.83 Billion MAD.
Financially, companies are consolidating their positions through prudent and balanced management of their investments. The total investment portfolio stood at 225 Billion MAD, a slight increase of 1%. The portfolio structure remains stable: 48% invested in fixed-income instruments, 42% in equities, 6% in real estate and 4% in other investments.
This allocation illustrates insurers’ desire to combine safety, diversification, and sustainable returns, while integrating regulatory requirements and the pressures of the macroeconomic context.
New Growth Perspectives
On an African scale, Morocco consolidates its place among the most structured markets on the continent. According to the latest report from the African Insurance Organization (AIO), it represents 8.7% of African insurance premiums, or 5.5 billion dollars. It thus ranks well ahead of Egypt (4%), but remains far from South Africa, which dominates the sector with 68.2% of the market share.
The sector’s momentum is expected to intensify thanks to a series of recent and upcoming reforms. The introduction of compulsory insurance in the construction sector, such as “all-risk construction site” insurance and “ten-year liability” insurance, marks a significant step.
This is part of the public authorities’ desire to strengthen the transparency, quality, and credibility of the construction sector, particularly as major projects planned for the 2030 World Cup approach.
Other obligations could follow, notably in multi-risk home insurance, offering new growth prospects to companies and specialized firms.
In parallel, the modernization of Book IV of Law No. 17-99 on the Insurance Code constitutes a major project. This revision aims to adapt the legal framework to the sector’s transformations, particularly by further opening the way for bancassurance.
Banks will now have the possibility to distribute an expanded range of products, including multi-risk home insurance contracts and other services linked to their banking activities, subject to prior authorization.
The partnership concluded in January between Crédit du Maroc and AtlantaSanad Assurance illustrates this trend towards expanding synergies between the two industries.
Insurance intermediaries will also benefit from increased flexibility, with the possibility to develop their network via branches without requesting authorization for each new location.
Finally, several structuring projects remain at the heart of the sector’s concerns, such as the full transition to the Mandatory Health Insurance (AMO), the reform of the automobile compensation scale, or the implementation of the tax on natural disasters.
All these issues are expected to profoundly reshape the insurance ecosystem and strengthen the market’s solidity in the long term.
A Significant Acceleration of Takaful
Takaful activity continues its upward trajectory. As of the end of June 2025, it recorded 66 Million MAD in premiums, a notable increase of 51.4% compared to the previous year. The Takaful Family branch, grouping Takaful death and investment insurance, largely dominates the activity, with a share of 90.6% of total premiums.
Takaful fund disbursements reached 27.4 Million MAD, of which 25.7 Million MAD were related to the Family component. Technical operating expenses, on the other hand, amounted to 24.6 Million MAD, including 7.7 Million MAD. As for the remuneration received by operators for managing the funds, it totals 16.6 Million MAD, of which 89.5% comes from Takaful Family activities.
These figures confirm the gradual rise of this still recent segment, which is expected to play an increasing role in the insurance ecosystem.
