Motor Third-Party Liability Insurance Rates: Quietly Increased

What was merely a rumor a few days ago has now become a reality. Following a trial run around three months ago, insurance companies have finally increased premiums for motor third-party liability coverage. The update was made directly to the underwriting and pricing systems used by general agents and other brokers, who this time were not involved in the decision.
In the absence of any official communication, it is difficult to determine whether all insurers have applied the same increase – initially set at 5% – or the exact date on which it took effect. In any case, as an example, a review of an insurance policy issued by Sanlam on Friday, August 7, clearly shows a difference between the amount stated in the policy that expired on August 6 and the new one. For the same customer and the same insurer, the premium rose from MAD 830 to MAD 870, an increase of approximately 5%, representing an additional MAD 40.
However, this increase is expected to extend over the 2026–2030 period. For example, an insurance premium of MAD 2,950 before the increase would rise to approximately MAD 3,763 by 2030. This would represent an additional cost of more than MAD 800 as a result of the cumulative increases.
The “pricing update” was initially scheduled to take effect on April 1, had it not been for the Competition Council’s refusal. As a result, insurers sent notices to their distribution networks informing them that the decision had been suspended and that a new implementation date would be communicated in due course. This suggests that the increase was ultimately only a matter of timing, despite the Competition Council’s intervention.
“Unlike last time, we were not informed that the new rates had come into effect. We only realized it when we noticed that the amounts shown on insurance policies had actually increased. This unexpected decision coincides with the summer holiday period,” explains a general agent.
General agents have been asking their counterparts on social media whether they were aware of the increase and its effective date. Some only noticed the change after printing the insurance policy. Apparently, unlike last March, insurance companies have decided to revise their rates separately and at different times.
H.E.