The Moroccan Authority for Insurance and Social Welfare (ACAPS) is taking a significant step toward strengthening household security with a feasibility study on mandatory home insurance. This initiative, led by the actuarial firm ARM Consultants, seeks to modernize the country’s insurance landscape while improving the resilience of households against housing-related risks.
The earthquake that struck Al Haouz in September 2023 served as a stark reminder of the vulnerabilities faced by Moroccan households. Many families, lacking any form of insurance, were forced to shoulder the costs of rebuilding on their own. This disaster highlighted the urgent need for a solid framework to protect homes across the country.
While Morocco has made progress in improving access to housing, home insurance remains largely underutilized. This is particularly true for homeowners who purchase properties outright without relying on bank loans. Without insurance coverage, these families remain exposed to devastating financial losses.
ARM Consultants, tasked with developing a comprehensive strategy, is focusing on several key areas to tailor the plan to Morocco’s specific needs. Their work includes assessing household insurance requirements, evaluating existing products in the market, and drawing lessons from international examples. The study will also analyze the unique risks associated with residential properties in Morocco and examine the economic and social impact of introducing mandatory insurance. To ensure smooth implementation, the project will address necessary regulatory adjustments and propose mechanisms for oversight and enforcement.
The goal of this initiative extends beyond simply covering risks. By mandating home insurance, ACAPS hopes to transform the insurance sector, reduce the financial impact of natural disasters, and strengthen the resilience of housing nationwide. At the same time, the move aims to align Morocco’s practices with global standards, positioning the country as a regional leader in risk management and social protection.
Morocco’s current insurance market offers multi-risk home coverage, which includes protection against events like fire, water damage, theft, and structural leaks. Many policies also incorporate liability coverage, which compensates third parties in cases of damages caused by the policyholder. To expand access, some insurers have introduced micro-insurance products targeting a more diverse customer base. However, despite this variety, subscription rates remain low due to a lack of public awareness about the benefits of home insurance.
Introducing mandatory home insurance could mark a transformative moment for the sector. By fostering a culture of preparedness and offering households better protection, the reform aims to modernize Morocco’s institutions while addressing pressing economic and social challenges. If implemented effectively, this initiative could set a new standard for resilience, not only safeguarding homes but also enhancing the long-term security of Moroccan families.
