Asia Insurance Review
Source: eWeekly Middle East
The longstanding issue of mandatory disaster insurance has been revived, following severe damage caused by recent floods in southern Morocco.
Mimoun Zbair, project director at the Insurance and Health Welfare Department of the Ministry of Economy and Finance confirmed that the insurance project has been submitted to the General Secretariat of the government, reported the Media 24 news website. Compulsory disaster insurance could take effect next year.
The proposed compulsory disaster insurance scheme would cover such risks as earthquakes, tsunamis and floods. All property insurance (multi-risk residential, industrial risks, fire, automobile, etc) must include a mandatory subscription to disaster cover. Insurers can share the risk with reinsurers, including foreign reinsurers.
However, there is recognition that the insurance would face a number of obstacles in Morocco. This is because the supply of insurance is still too limited and the premiums are considered expensive for individuals. At the same time, Moroccans in general lack awareness of insurance.
The proposal for mandatory disaster insurance was adopted by the Council of Ministers in 2010, but no action had been taken on it until recently because of political developments in the country. The matter has gained urgency now because of the increased frequency of catastrophic weather events.
