Insurance sector to experience strong growth in the Maghreb, predicts Standard & Poor's
The insurance industry in the Maghreb region has a high growth potential, according to a new report from credit rating agency Standard & Poor's (S&P).The insurance industry in the Maghreb region has a high growth potential, according to a new report from credit rating agency Standard & Poor's (S&P).
The document, which focuses on the long-term growth prospects for the insurance industry in Morocco, Algeria, and Tunisia, says the potential is maintained despite short-term economic uncertainty.
"We believe that the growth of insurance premiums will be higher than the GDP growth generally in the three markets. The low penetration rate, as well as governments' efforts, will enable this growth," says the agency.
It estimates that several factors will drive the expansion of insurance in the regions over the next five years, including the development of infrastructure and real estate.
Other factors include the growing demand for savings, pension and health from the middle class, as well as governments' policies to develop the sector.
The insurance penetration rate currently stands at 0.6 per cent in Algeria, 3.1 per cent in Morocco and 1.8 per cent in Tunisia.