Concentration remains at an average level in 2021

The concentration of the insurance sector remained at its average level during the 2021 financial year, according to the 9th annual report on financial stability, published by Bank Al-Maghrib (BAM), the Insurance Control Authority and of social security (ACAPS) and the Moroccan Capital Market Authority (AMMC). “In 2021, the structure of the insurance market in terms of number of operators and market shares remained almost unchanged. Consequently, the concentration of the insurance sector, measured by the Herfindahl-Hirshman (HHI) index, remained at its average level at 0.117 once morest 0.116 a year earlier,” the report said. In Life insurance, concentration has kept its high level with an index that stood at 0.177 (compared to 0.178 in 2020), adds the same source, noting that the reduced number of players active in this segment, combined with an asymmetrical distribution of their market share, continues to explain this finding. On this market animated by only nine players, three of them absorb 66.7% of market share. Within the life branch, the analysis of concentration brings out the same observation. Indeed, all the categories of this branch display high levels of concentration which are more marked for the categories “mixed” and “UC contracts” (units of account), reports MAP. However, a downward trend in the concentration of UC contracts is emerging, driven by the growing interest of players in marketing this type of contract, the report reveals. With an HHI of 0.137, non-life insurance (excluding assistance and credit) maintained an average level of concentration. The number of players on this market remained stable and the shares held by the players did not undergo any significant changes. Compared to 2020, the intra-non-life branch concentration has not changed. The said report indicates that the categories “Automotive”, “General civil liability”, “Fire and natural elements” and “Accidents at work and occupational diseases” show average concentration levels, while the categories “Injury accidents”, “Risks techniques”, “Transport”, surety credit assistance and other non-life operations (hail, livestock mortality, theft, climatic risks) stand out for their high levels of concentration.