Morocco’s insurance industry continued its growth streak in 2024, closing the year with revenues of MAD 58.8 billion ($5.9 billion), according to a joint financial stability report published Monday by Bank Al-Maghrib, the Insurance and Social Welfare Control Authority (ACAPS), and the Moroccan Capital Market Authority (AMMC).
The sector recorded 5.1% overall growth, with gains nearly evenly split between life insurance, which grew 5%, and non-life insurance, which rose 5.2%. Life insurance showed a strong rebound after weak performance in 2023, when growth was just 1.8%.
Net profits for the industry reached MAD 4.4 billion ($440 million), marking a 2.9% increase year-over-year.
Pension Funds Remain in Crisis
Despite robust insurance growth, Morocco’s pension systems remain under strain. The report warned of “deep structural imbalances” in the country’s basic pension funds, with only temporary relief seen in some public-sector indicators following the April 29, 2024, social dialogue agreement on wage increases.
No significant progress has been made on the long-term sustainability of pension systems, the financial regulators said.
The private-sector CNSS (National Social Security Fund) long-term branch maintained a positive financial balance in 2024, largely thanks to favorable demographic trends. But the report cautioned that lower contribution rates and increased access to early retirement or contribution refunds could undermine long-term solvency.
The report stressed the urgent need for structural reform across both public and private pension systems. While a strategic direction has been outlined in the latest round of social dialogue, regulators said future reforms must focus on fair contribution pricing, reducing unfunded liabilities, and safeguarding long-term sustainability.
Declining Reserves Raise Red Flags
The figures are alarming. The civil service pension system (CMR-RPC) saw its reserves fall to MAD 57.4 billion at the end of 2024—a 7.1% drop from the previous year. Over the past five years, those reserves have shrunk by an average of 6.4% annually.
Since first posting a technical deficit in 2014, the CMR-RPC has accumulated a total shortfall of MAD 60.3 billion—over MAD 35 billion of which occurred in the past five years alone.
Aside from MAD 66.2 billion in CNSS long-term deposits held at the Caisse de Dépôt et de Gestion (CDG), Moroccan pension fund assets remain heavily concentrated: 54.3% in fixed-income investments, 34.3% in equities, and 10.3% in real estate.
add your comment
Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.