Insurance Regulation in Morocco for Foreign Insurers, Brokers and Corporate Buyers
Key takeaways: Practice Guide — September 2026
Regulatory Framework: The Insurance Code and ACAPS
Morocco’s insurance market is governed by Law 17-99 (Code des Assurances), promulgated by Dahir No. 1-02-238 of 3 October 2002. The Code has been amended on multiple occasions, most notably by Law 59-13 (2016) and Law 87-18 (2019), the latter introducing the takaful framework. Law 17-99 is organized into four Books: the insurance contract (Book I), mandatory insurance (Book II), insurance undertakings (Book III), and motor insurance (Book IV).
Supervision of the sector rests with the Autorité de Contrôle des Assurances et de la Prévoyance Sociale (ACAPS), an independent authority with legal personality and financial autonomy created by Law 64-12 (2016), replacing the former Direction des Assurances et de la Prévoyance Sociale (DAPS). ACAPS exercises broad powers of licensing (agrément), prudential supervision, market-conduct regulation, and sanctions.
Licensing Routes for Foreign Insurers and Reinsurers
Under Articles 161–166 of Law 17-99, any insurance or reinsurance undertaking must obtain an agrément from ACAPS before commencing operations in Morocco. Three principal routes are available to foreign players:
Incorporating a Moroccan Company (SA)
A foreign insurer may incorporate a société anonyme (SA) under Moroccan law. This is the most common structure for full-service market entry and provides full access to all classes of insurance business.
Establishing a Branch (Succursale)
Foreign insurers may also establish a branch (succursale), subject to ACAPS agrément and reciprocity conditions. The branch must maintain local solvency and governance requirements equivalent to those of a Moroccan SA.
Cross-Border / Freedom-of-Services Limits
Morocco does not recognize a general freedom-of-services regime for direct insurance. Cross-border provision into Morocco without local establishment is essentially prohibited for direct insurance (see Section 4 below on Article 156). This is a critical distinction for foreign insurers accustomed to passporting frameworks.
Foreign-Ownership Rules
Historically, a 50% Moroccan-ownership requirement applied. This has been largely liberalized, but ACAPS retains discretionary approval power over qualifying holdings. Under Articles 170–173 of Law 17-99, any acquisition of a qualifying holding (10% or more) in a Moroccan insurer requires prior ACAPS authorization. Fit-and-proper requirements apply to shareholders and directors.
Intermediaries and Brokers
Articles 291–308 of Law 17-99 require all insurance intermediaries—agents and brokers alike—to hold an agrément from ACAPS. The Code draws an important distinction:
- Agents are tied to a single insurer.
- Brokers act independently and may place risks with multiple insurers.
Professional requirements include a financial guarantee (cautionnement), professional liability insurance, and professional competency qualifications.
Bancassurance
Banks and Barid Al-Maghrib (the postal bank) may distribute certain insurance products under specific ACAPS authorization, governed by joint circulars of ACAPS and Bank Al-Maghrib. This bancassurance channel has become a significant distribution avenue for life and savings products.
The Ban on Insuring Moroccan Risks Abroad
Article 156 of Law 17-99 prohibits, directly or through an intermediary, the subscription of an insurance contract with an insurer not licensed in Morocco to cover risks situated in Morocco. Violations may result in the nullity of the contract and administrative sanctions.
Key Exceptions
- Reinsurance: Reinsurance treaties ceded abroad are expressly excluded from the prohibition.
- Marine and aviation: Marine hull and aviation hull/liability insurance may be placed with foreign insurers.
- ACAPS derogations: ACAPS may grant a specific derogation where the risk cannot be adequately covered by the local market.
Foreign corporate buyers with Moroccan subsidiaries should carefully audit their global programs to ensure that locally sited risks are covered by a locally licensed insurer or fall within a recognized exception.
Mandatory Insurance Covers for Businesses
Motor Third-Party Liability
Originally established by the Dahir of 1 October 1969 and now integrated into Book IV of Law 17-99, all motor vehicles must carry minimum third-party liability cover.
Workplace Accident Insurance (AT/MP)
The Dahir of 6 February 1963, as significantly amended by Law 18-12 (2014), requires employers to insure employees against workplace accidents (accidents du travail) and occupational diseases (maladies professionnelles). This obligation applies to all private-sector employers without exception.
Construction Insurance (TRC / Decennial Liability)
Articles 157–160 of Law 17-99 require construction all-risks insurance (TRC—Tous Risques Chantier) and a ten-year (decennial) liability guarantee for structural defects on construction projects.
Professional Liability
Mandatory professional liability insurance is required for certain regulated professions, including notaries, architects, accountants, and, in certain contexts, lawyers.
Claims and Disputes
Article 36 of Law 17-99 establishes a two-year prescription period for claims arising from the insurance contract, running from the event giving rise to the claim. Under Article 37, an insurer that pays a claim is subrogated to the insured’s rights against the responsible third party.
The Comité Consultatif des Assurances serves as an advisory body that may be consulted on insurance policy matters. Disputes are generally submitted to Moroccan commercial courts. Arbitration clauses are recognized under Law 08-05 on arbitration and mediation, and international arbitration remains available for cross-border reinsurance and investment disputes.
Takaful Framework
Law 87-18 (2019) amended Law 17-99 to create a comprehensive legal framework for takaful (Islamic insurance) and retakaful. Takaful operators must obtain a separate agrément from ACAPS.
The law permits two structures: a dedicated standalone takaful company, or a takaful window within a conventional insurer. All takaful products must comply with Sharia principles—no riba (interest), no gharar (excessive uncertainty), and no maysir (gambling). Sharia compliance is certified by the Comité de la Finance Participative (successor to the former Conseil Supérieur des Oulémas). A strict segregation of the participants’ fund (takaful fund) from the shareholders’ fund is mandatory.
Key Takeaways for Foreign Businesses
- Local establishment is essential: Morocco does not permit cross-border freedom of services for direct insurance. A Moroccan SA or licensed branch is required to write local risks.
- ACAPS is the gatekeeper: Licensing, qualifying-holding approvals, and intermediary agréments all flow through ACAPS.
- Article 156 compliance: Global insurance programs must ensure Morocco-situs risks are covered locally or fall within a recognized exception.
- Mandatory covers: Motor, workplace accident, construction, and professional liability obligations apply to most businesses operating in Morocco.
- Takaful is live: The 2019 framework offers new product and market-entry opportunities for Sharia-compliant operators.
Foreign insurers, reinsurers, brokers, and corporate buyers entering or operating in the Moroccan market are well advised to engage experienced Moroccan counsel early, both for regulatory strategy and ongoing compliance.
Disclaimer: This guide is provided for informational purposes only and does not constitute legal advice. Laws and regulations are subject to change. Readers should consult qualified legal counsel for advice specific to their circumstances.