Les Unpaid claims in insurance: challenges and opportunities for a growing sector

Abstract

Abstract

The insurance sector plays a key role in the global economy, with sustained growth in 2023 (+3.9%) and an improvement in the first half of 2024 (+4.4%) in Morocco, particularly in the Life and Non-Life branches. However, managing unpaid premiums remains a major challenge, exacerbated by policyholders' financial difficulties, intermediaries' practices, and installment payments. The objective of this article is to analyze the causes of unpaid premiums in the insurance sector and propose solutions to improve their management.

Unpaid premiums lead to excessive delays and, in some cases, premium misappropriation, threatening insurers' solvency and market stability. In response to these challenges, risk pooling, co-insurance, and reinsurance remain essential to ensuring the financial balance of the sector. Efficient premium collection is crucial to guaranteeing claims settlement.

To address this issue, several solutions are proposed: strict debt recovery, compliance with the Insurance Code, adoption of the "Cash Before Cover" principle, and the creation of a risk database. Cooperation between insurers and intermediaries, along with prudent management of payment deadlines, is also essential to strengthening the stability of Morocco's insurance sector.