Casablanca – Morocco’s insurance and reinsurance industry closed the first half of 2025 with unprecedented growth, reflecting stronger demand for both life and non-life products and a steady expansion of investment portfolios. Data released by the Insurance and Social Welfare Supervisory Authority (ACAPS) show that total premiums written by the end of June reached $3.6 billion, representing a 7% increase over the same period in 2024. The gains were spread across all major categories, underscoring the sector’s resilience in a competitive financial landscape.

Robust quarterly performance

The second quarter of 2025 alone delivered a powerful boost to the market. Premiums for April through June climbed to $1.72 billion, up 10.2% from the same quarter a year earlier. Life insurance contracts generated $918 million during the quarter (+8.1%), while non-life policies produced $804 million (+12.7%). This strong mid-year surge followed an equally positive first quarter, helping the industry achieve one of its best half-year performances on record.

Life insurance driven by savings demand

Life insurance continues to be a central engine of growth. Over the first six months, premiums in this branch totaled $1.54 billion, a rise of 8.1% year on year. Savings products remain the dominant driver, reflecting households’ appetite for secure, long-term investments.

  • Dirham-based savings contracts brought in $1.25 billion, advancing 6.3% compared with the first half of 2024.
  • Unit-linked savings products, which allow policyholders to invest in diversified financial markets, posted a remarkable 63.5% jump to $91.6 million.
  • Death insurance showed steadier growth, adding 2.4% to reach $191.8 million.

These figures indicate growing confidence in the sector’s investment options, particularly among customers seeking a mix of stability and higher potential returns.

Non-life branches show broad-based strength

Non-life insurance maintained its leading market share with cumulative premiums of $2.06 billion in the first half, an increase of 6.2% from a year earlier. Auto coverage remains the largest single line, reflecting Morocco’s expanding vehicle fleet and regulatory requirements.

  • Automobile policies collected $928 million, up 5%.
  • Civil liability coverage reached $757 million, a 3.9% increase.
  • Personal accident and health products generated $321 million, gaining 5.4%, while dedicated health insurance alone contributed $278 million (+5.7%).
  • Workers’ compensation and occupational illness policies added $188.7 million, advancing 6.1%.

Several specialized segments recorded striking double-digit gains, signaling greater diversification in risk coverage. Technical risk insurance soared 76.7% to $36.7 million, catastrophe protection climbed 12.2% to $41.1 million, credit and surety rose 10.6%, and assistance services expanded 6.6%. Fire insurance grew more moderately by 3.2%, reaching $190.7 million.

Rising claims but controlled costs

The sector also experienced an uptick in claims, with benefits paid to policyholders rising 9.8% in the second quarter to about $1.22 billion. Despite this increase, acquisition and management expenses were kept largely in check, edging up only 0.5% to $257 million, a sign of efficient cost management in a growing market.

Expanding investment portfolios

Beyond premium growth, Moroccan insurers strengthened their financial base through carefully managed investments. Total assets dedicated to investments stood at $23.2 billion at the end of June, up 1% from the previous quarter. The asset mix remains well balanced:

  • Fixed-income securities represent 48% of holdings ($11.0 billion, +0.6%).
  • Equities account for 42% ($9.85 billion, +0.5%).
  • Real estate investments grew 6% to approximately $1.4 billion, including $828 million placed in real estate investment trusts (OPCI).
  • Other assets make up the remaining 4%.

This diversified allocation provides stability while supporting long-term returns, reinforcing the sector’s ability to meet policyholder obligations even in volatile markets.

Innovation and regulatory oversight

In parallel with these financial achievements, ACAPS has launched a strategic initiative to prepare the industry for rapid technological change. The regulator commissioned a comprehensive study on the use of artificial intelligence and advanced technologies in insurance operations. The project aims to identify potential risks, recommend safeguards, and ensure that AI adoption protects customer data, maintains transparency, and preserves market stability.

Outlook

With premiums exceeding $3.6 billion, strong investment growth, and proactive regulatory planning, Morocco’s insurance and reinsurance sector is consolidating its position as a cornerstone of the national financial system. Rising savings contracts, diversified non-life offerings, and the embrace of new technologies suggest that the industry is well positioned to sustain its momentum through the remainder of 2025 and beyond.