Despite their geographic proximity and many commonalities, the insurance markets of Morocco, Algeria and Tunisia have significant differences – economic, demographic and cultural, says AM Best.
In a new report, “The Maghreb – One Region, Three Unique Insurance Markets”, AM Best examines the long-term prospects of the three insurance markets of the Maghreb region.
Over the past five years, all three Maghreb insurance markets have demonstrated solid growth trajectories, above global market averages, says the global credit rating agency. That trend is expected to persist, despite the near-term challenges of the Covid-19 pandemic and the associated economic downtown.
However, AM Best notes too there are numerous challenges in the short- to medium-term, which have the potential to limit the region’s insurance expansion. These challenges include political and economic pressures, the population’s negative perception of insurance and the evolving nature of regulatory and governance frameworks.
In addition, the Covid-19 pandemic, and its knock-on effects on financial markets and economies worldwide, is expected to adversely impact the growth prospects of local insurers in the near term.