A Chapter From -Regional Practical Guidance - Insurance - Morocco
Transport & Insurance Focus
Morocco offers a well-structured and progressive regulatory environment for insurance and reinsurance businesses, with ACAPS serving as the sole supervisory authority.
Law Update: Issue 376 – Transport & Insurance
Anand SinghSenior Counsel, Transport & Insurance
Melody HuangAssociate,Transport & Insurance, China Group
Nazly SadikParalegal,Transport & Insurance
This article is part of a regional regulatory guide for the insurance sector and sets out sample questions and responses focused on Morocco. It provides a high-level overview of the regulatory framework governing the insurance and reinsurance sectors, including Islamic insurance (Takaful), under the supervision of the Autorité de Contrôle des Assurances et de la Prévoyance Sociale (ACAPS). As Morocco continues to modernize its financial sector, ACAPS plays a central role in developing insurance regulations, supervising market players, and ensuring consumer protection and financial stability. This guide covers key regulatory aspects such as licensing, capital requirements, outsourcing, reinsurance rules, intermediary regulation, and dispute resolution procedures—providing essential insights for entities looking to operate or expand in the Moroccan insurance market.
What is the name of the main regulator(s) governing insurance in this jurisdiction? The Autorité de Contrôle des Assurances et de la Prévoyance Sociale (ACAPS) is the primary regulatory authority responsible for overseeing the insurance and reinsurance industry in Morocco.
Is there a different regulator covering Islamic insurance in this jurisdiction?No, ACAPS also regulates Takaful (Islamic insurance) in Morocco. However, specific regulations governing Takaful operations were introduced under Law No. 87-18, which amended the Insurance Code.
Is there a different regulator for reinsurance?No, reinsurance operations are also regulated by ACAPS, which grants authorizations and monitors financial solvency and compliance.
Reference: Articles 242, 243 of the Insurance Code (State control over insurance and reinsurance companies).
What are the main areas which they regulate? ACAPS is responsible for:
Licensing and supervision of insurance and reinsurance companies.
Ensuring financial stability through capital adequacy and solvency requirements.
Overseeing Takaful insurance and ensuring compliance with Shariah principles.
Regulating insurance intermediaries (brokers, agents, bancassurance).
Monitoring insurance contracts, pricing, and consumer protection.
Supervising financial reporting, actuarial reserves, and risk management.
Conducting on-site and off-site inspections.
Does Morocco have any other independent jurisdiction that function separate from the onshore jurisdiction? Morocco does not have an independent free zone regulator for insurance. The entire insurance sector, whether operating domestically or internationally, falls under ACAPS jurisdiction. Unlike other jurisdictions with offshore or free zone insurance hubs, Morocco does not offer a dual regulatory system for onshore and offshore insurance entities. However, Casablanca Finance City (CFC) serves as a financial hub offering tax and regulatory incentives for financial institutions, including reinsurers.
Are there any restrictions on the way reinsurance operates in this jurisdiction?Yes, reinsurance in Morocco is subject to the following restrictions:
Risks located in Morocco must be reinsured with companies authorized in Morocco, except in cases where local reinsurance is unavailable (Article 162).
Reinsurance agreements must comply with regulatory standards set by ACAPS (Article 248).
Reinsurance companies must maintain solvency margins and financial reserves in accordance with Moroccan law (Article 238).
Are there limits or requirements for outsourcing operations to third-party vendors, particularly for critical functions? How are foreign branches regulated in Morocco?Yes, outsourcing is restricted for insurance companies. Any outsourcing arrangement must:
Be approved by ACAPS if it involves core insurance functions.
Ensure that the insurance company remains responsible for outsourced activities.
Reference: Articles 227-228 of the Insurance Code.
Foreign insurance companies cannot operate in Morocco without obtaining a license from ACAPS and establishing a local presence. They must:
Be incorporated as a joint-stock company or mutual insurance company in Morocco.
Maintain a minimum capital requirement.
Comply with Moroccan solvency and reporting requirements.
Reference: Articles 165-168 of the Insurance Code.
What are capital requirements in Morocco?Insurance and reinsurance companies in Morocco must comply with the capital requirements established under the Insurance Code (Law No. 17-99). According to Article 171, insurance and reinsurance companies must have a minimum capital of MAD 50 million (approximately USD 5.27 million). This requirement applies to both joint-stock companies and mutual insurance companies. For mutual insurance companies, this amount is referred to as the founding capital, as stipulated in Article 176. The administration may impose a higher capital requirement depending on the nature of the operations carried out by the company.
Is there a statute of limitations on insurance claims If so, what is it?Yes, Moroccan law imposes a statute of limitations on insurance claims. Generally, the time limit for bringing a civil claim is 15 years from the beginning of the obligation. However, specific types of insurance or particular circumstances may be subject to different limitation periods. It's essential for policyholders and beneficiaries to review their insurance contracts and consult legal counsel to understand the applicable time frames for initiating claims.
What mechanism do insurance policies usually provide for resolution of coverage disputesInsurance policies in Morocco typically include the following dispute resolution mechanisms:
Internal Dispute Resolution
Most insurers have an internal process to handle complaints before escalating the matter legally.
Filing a complaint with ACAPS
Arbitration Clauses
Some policies require or offer the option of resolving disputes through arbitration, providing a faster and private alternative to court proceedings.
Mediation
Certain insurance contracts include mediation provisions, allowing a neutral third party to facilitate a fair settlement between insurer and insured.
Morocco offers a well-structured and progressive regulatory environment for insurance and reinsurance businesses, with ACAPS serving as the sole supervisory authority. The country’s evolving legal framework, including the integration of Takaful products and modern reinsurance regulations, reflects its commitment to aligning with international best practices while addressing local market needs.
Our insurance lawyers in Morocco are experienced in advising insurers, reinsurers, and intermediaries on regulatory compliance, licensing, product development, advise on Shariah-compliance, and corporate governance. Whether you are entering the Moroccan market or seeking to ensure ongoing compliance with ACAPS regulations, our team is ready to support your legal and strategic objectives. Please reach out to us for dedicated assistance on any insurance-related matters in Morocco.
For further information,please contact Anand Singh, Melody Huang and Nazly Sadik.
Published in April 2025
