BMCE Capital identifies the challenges – Today Morocco

2024-02-09 11:00:48

According to the note, the financial gains relating to this segment seem very limited compared to the investments made.

Analyse : According to BMCE Capital Research, the development of the Takaful activity seems to come up once morest various obstacles including a non-diversified product offering and an incomplete participatory ecosystem, particularly in terms of the capital market.

11.8 million dirhams, this is the volume of premiums issued generated by the Takaful activity in its first year of start-up. 84% of these premiums are in the form of death insurance. Fire insurance captures 10% of emissions compared to 5% for individual Takaful investment insurance. In the first half of 2023 alone, the Takaful activity attracted a total premium volume of 29 million dirhams. A progression driven by Takaful family. This category, composed of death insurance, Takaful investment and variable capital contracts, alone accounts for 90% of premiums, i.e. a value of 26 million dirhams, while the other Takaful accounts reached 3 million over the said period. of dirhams.

These data formulated by ACAPS were taken up by BMCE Capital Global Research in its sectoral note entitled “Insurance sector in Morocco”. This publication reviews the dynamics of the Takaful activity, the official launch of which took place in 2022. A development which, according to BMCE Capital Global Research, “seems to come up once morest various obstacles including a non-diversified product offering and an ecosystem incomplete participatory, particularly in terms of capital market (stock market, Sukuk and investment funds)”. and added: “The financial gains relating to this segment seem very limited at the moment compared to the investments made (a minimum share capital of 50 million dirhams)”. Referring to the analysis of BMCE Capital, this situation leaves doubts regarding the relevance of a positioning on this activity, particularly in terms of profitability.

BMCE Capital also recalls the role that this insurance activity would play in financial inclusion. Its emergence will, according to BMCE Capital analysts, make it possible to integrate populations who do not use conventional insurance for religious beliefs or ethical reasons. “It should, a priori, contribute to improving the insurance penetration rate and to promoting the dynamics of the Moroccan insurance market,” we learn in this sense. For BMCE Capital Research, positioning in this segment through the creation of a dedicated subsidiary might seem interesting for insurance companies, to the extent that it would present various advantages. In this sense, let us cite the possibility of operating at the level of different branches of activity within the framework of a single authorization for actors wishing to support their partner banks. Added to this is also the pooling of human resources and distribution channels with the parent company, making it possible to optimize investment and operating costs as well as the recognition of additional income from commissions deducted at source on the contributions to the fund.

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