Insurance: An Unconstitutional Reform?

The overhaul of Law No. 17-99, which governs Morocco’s Insurance Code, has met with strong opposition from insurance intermediaries. Several of the proposed measures have sparked anger among the sector’s commercial network, particularly general agents and brokers.
The main point of contention is the proposed obligation for all intermediaries to join the National Federation of General Insurance Agents and Brokers (FNACAM) as the sole professional organization. This provision would repeal Article 285 of the current law, which provides for the establishment of an Insurance Advisory Committee that may be consulted by both the public administration and a majority of its members. The committee may also issue opinions on any draft law or regulatory text relating to the insurance sector.
Under the proposed reform, the Advisory Committee would disappear. Instead, all intermediaries would be required to join the same organization—FNACAM—under the new Article 285. The federation’s statutes, as well as any subsequent amendments, would have to be approved by the administration following an opinion from the Insurance and Social Welfare Supervisory Authority (ACAPS).
The same obligation would apply to insurance companies, which would be required to join the Moroccan Insurance Federation (FMA). The conditions and procedures governing the approval of the statutes of both organizations are still to be defined by decree.
On this issue, Slimane Bouslimi, a general insurance agent, argues that “ACAPS is a regulator whose role is not to approve the statutes of a professional association, even if it represents stakeholders in the insurance sector.”
When contacted by L’Economiste, ACAPS offered a different perspective.
«This opinion is justified by the fact that the Authority supervises insurance sector stakeholders and therefore possesses information that may assist in assessing the statutes of the two associations concerned. The review of these statutes will primarily seek to ensure that their provisions are consistent with the roles and responsibilities assigned to these associations, as well as with the organizational and operational rules governing the market. The objective is to enable all industry participants—including insurance companies, intermediaries and professional associations—to carry out their missions effectively and contribute to the sector’s development,» an internal source explained.
Nevertheless, the draft legislation had remained stalled for nearly eight years, mainly because of proposed amendments to Book IV submitted by the Moroccan Union of Insurance Agents and Brokers (UMAG), later renamed UMAC, before eventually entering the legislative process.
Hassan EL ARIF