The national insurance and reinsurance sector performed well in 2021 with a turnover (CA) of 52.4 billion dirhams (MMDH), up 8.9%, according to the Supervisory Authority of insurance and social welfare (ACAPS).
However, this growth contains contrasting developments between the insurance activity and the reinsurance activity, specifies ACAPS in a document on the situation of the insurance and reinsurance sector for the year 2021.
Thus, following a year 2020 marked by weak growth, the insurance activity has regained its momentum in both life and non-life insurance, notes the same source.
Overall, direct turnover increased by 9.9% to 49.6 billion dirhams, “a growth to be put into perspective in view of the significant slowdown observed in 2020”, notes ACAPS.
That said, continues the same source, the sector maintains a good performance over ten years with an average annual growth rate of 7.5%.
In detail, life insurance increased by 12.5% to 22.9 billion dirhams, according to the Authority, which specifies that this increase is driven by savings which recorded a growth of 12.9%, thanks to the resumption of savings contracts in dirhams (+12.2%) and the sustained momentum of units-linked products (+20%).
With an issue volume of 26.7 billion dirhams, non-life insurance also performed well with growth of 7.7%. This is mainly supported by the performance of motor insurance, which recorded a volume of premiums of 13 billion dirhams and growth of 8.6%.
With regard to the reinsurance business, following an exceptional year thanks mainly to the flows generated by the compulsory guarantee once morest the consequences of catastrophic events, acceptances fell by 5.2% with a business volume of 2 .8 billion dirhams, mainly concentrated in non-life insurance (94%).
This activity remains dominated by exclusive reinsurers, with a market share of 78%, although this share is down compared to 2020, notes ACAPS.
The document also shows that the cost of benefits and expenses of insurance and reinsurance companies recorded a double-digit increase in 2021 (+10.9%), noting that direct insurers continued to bear most of the benefits and costs recorded with 41.5 billion dirhams (+12%), while exclusive reinsurers saw their costs of benefits and costs fall by 14.8% to 1.4 billion dirhams.
By branch, the increase in benefits concerned both life insurance and non-life insurance. However, it remains stronger in life insurance (+13.7%; 24.6 billion dirhams) than in non-life insurance (+7.4%; 18.4 billion dirhams).
As part of their operations, insurance and reinsurance companies recorded technical charges of around 10 billion dirhams, up 3.8% compared to 2020.
With an increase of 1.8% and a cost of 5.9 billion dirhams, management fees remained relatively under control at a time when acquisition costs, remunerating the distribution of insurance products, increased by 6.9%. to 4 billion dirhams including 3 billion dirhams supported under non-life insurance, says the same source.
In addition, ACAPS points out that the outstanding amount of technical provisions amounted to 194.1 billion dirhams at the end of 2021, up 6.3% compared to 2020, noting that on this outstanding amount, direct insurers have concentrated 94%.
With 112.2 billion dirhams and an increase of 8.3%, the share of life technical provisions stood at 58%. As for non-life technical provisions, they increased by 3.7% to 81.9 billion dirhams.
