Auto Liability Insurance Rate Hike: The Competition Council’s Veto

The Competition Council has blocked the 5% increase in auto liability insurance rates scheduled to take effect this Wednesday, April 1 (seewww.leconomiste.com). Insurance companies have decided to suspend this initial rate adjustment, which was to be phased in over five years through 2030. The sales network was urgently contacted by operators on Tuesday, March 31, to relay the news. E-mails were also sent, mentioning a postponement to a later date and informing intermediaries that a new date would be communicated as soon as it was set.
“We were called in at the last minute to inform clients that the rates will ultimately remain the same. All companies have decided to suspend the series of increases, which comes amid a toxic social climate marked by skyrocketing fuel prices and uncertainties related to the Gulf War” , explains a general agent for an international insurance company.
The decision to raise rates is attributed to the entry into force on January 29, 2026, of Law No. 70-24, which aims to improve compensation for victims of traffic accidents. The goal is to pass on the additional costs to policyholders.
The decision to raise auto liability insurance rates was made jointly by all companies in the market. This is evidenced by a mailing sent by a major insurer, which states that all industry peers have decided to raise the rates for auto liability coverage “in order to preserve the technical balance of this line of business”. This coordinated increase bears all the hallmarks of a price-fixing agreement, especially since the magnitude of the increase is the same—5%—and the five-year schedule for the increases is identical as well, prompting a response from the Competition Council.
In anticipation of the rate restructuring, insurance companies had configured their information systems to account for the increase. Some policyholders have already taken out insurance policies, effective April 1, under the new financial terms. Affected customers should contact their general agent or broker to inquire about the procedures for reimbursing the rate difference. “ As a rule, insurers are required to contact these customers to reimburse them, and it is up to the customers to take the initiative to contact their companies to obtain a refund of the difference. As far as (insurance) intermediaries are concerned, they will only be able to reimburse them once they have received written instructions from the insurance company they represent ” , notes a general agent.
Hassan EL ARIF