Morocco Launches Compulsory Insurance Against Natural Disasters & Terrorism 

Souss Massa River, Morocco
Souss Massa River, Morocco

In recent years, Morocco has seen several catastrophic cases with roots stemming from natural disasters to destruction from terrorism. As a result of incidents such as the August 2019 flood in Taroudant province (of the Souss-Massa region, which killed 8, and reports from the High Council claiming since 2000 natural disasters have increased 22-fold, the kingdom is making insurance changes. Ministry of Economy and Finance Director Nouman Essami has spoken that “from 2020, insurance against natural and terrorist disaster damages will be compulsory in Morocco.” The announcement was made at the Marrakech 26th Afro-Asian Federation of Insurance and Reinsurance Conference. For those that do not have insurance, they will still benefit from a fund entitled “Disaster Solidarity Fund” said Hassan Boubrik, the Chairman of the Supervisory Authority of Insurance and Social Welfare.

The insurance news is aligned with other steps from the government to help protect Moroccans against loss and damage caused by natural disasters. On September 12, 2019, the “Solidarity Tax against Disastrous Events” was announced. The new tax will introduce 1% premiums and contributions paid under insurance contracts, with the exception of life insurance contracts. The order will be adopted to cover floods, earthquakes, and tsunamis. Originally the law was intended to be approved in April 2019 and was postponed. The Government’s decision to focus on the draft decree comes in light of the recent devastating floods hitting several regions across Morocco.

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