(Ecofin Agency) - Even though the growth is small, it’s mostly thanks to the strong performance of non-life insurance.

Morocco's insurance market (both life and non-life) reached 32.6 billion dirhams (about $3.33 billion) in the first half of 2024. The data was released by the Moroccan Insurance Federation (FMA) on October 8.

The figure represents an increase from 31 billion dirhams during the same period in 2023, marking a 5.2% annual growth. The insurance penetration rate stands at 3.9%, according to the Insurance and Social Welfare Control Authority (ACAPS).

While modest, this growth is largely driven by the non-life sector, which accounts for 57.8% of total revenue, compared to 42.3% from life and capital insurance. Within the life insurance category, growth is fueled by group insurance (up 9%) and capital investments (up 7.6%). In the non-life sector, the rise is due to strong performance in products like general liability insurance (up 8.3%), fire insurance (up 7.5%), and assistance services (up 6.4%). Automobile insurance, which holds a 26.5% market share in this sector, has also grown by 5.6%. However, technical risks related to damages at construction sites, civil engineering works, or IT equipment have seen a significant decline of 24.1%.

This upward trend in the insurance sector is driven by the overall progress made by the 24 insurance companies operating in the country during this period. Wafa Assurance, a subsidiary of Attijariwafa Bank, remains the market leader with an 18.8% market share in the first half of 2024 and a revenue increase of 7.9%. It is followed by Royale Marocaine d’Assurance (RMA) with a 14.4% market share, Axa Assurance Maroc (12.4%), Mutuelle Taamine Chaabi (11.9%), and Sanlam (10.8%).

The standout performer in Morocco's insurance sector has been Taawounyiate Taamine Takafuli, a subsidiary of the Moroccan Central Insurance Mutual (MCMA) and the Banque Centrale Populaire (BCP), which entered the market in 2022. Its revenue surged by 116% year-on-year. Despite its rapid growth, it ranks 23rd with a market share of just 0.02% in the first half of 2024.