Officially launched on June 28, Al Maghribia Takaful will carry the participatory insurance activity within La Marocaine Vie. Like the rest of the market, its first products will be backed by crowdfunding. Beyond user protection, Takaful is also an instrument for developing financial inclusion. It will be necessary to accelerate the construction of the ecosystem at the risk of delaying the deployment of a certain number of products.
Promised for a meteoric rise by various polls a few years ago, participatory finance is waiting for a real take-off. The availability of Takaful could boost the market a little more, especially the financing part. Al Maghribia Takaful, the subsidiary of La Marocaine Vie, declined its offer during its official launch on Tuesday (June 28th) in the presence of the leaders of the insurance company and Societe Generale Morocco. Like the rest of the market, the first products will be backed by crowdfunding. Al Maghribia Takaful will offer death and disability coverage.
The objective initially will be to equip the beneficiaries of Mourabaha who are deprived of this protection. Several thousand customers are affected. “The resumption of the stock must be done quickly but calmly”, indicates Abdelkrim Fazazi, general manager of Al Maghribia Takaful. The structure will capitalize on synergies with Dar Al Amane (Societe Generale Morocco’s participatory window for which the bank is working on a spin-off project) and on the group’s experience to move forward on this project.
It will also offer multi-risk building insurance available in two products. One is intended for customers who have subscribed to the Murabaha and the other for owners who express the need to insure risks related to housing. With its participatory window claiming 3rd place in the market and now a Takaful entity, the Societe Generale Morocco group is expanding its range of offers a little more.
“At a minimum, the ambition is that Al Maghribia Takaful can occupy the same position as Dar Al Aamane in the Takaful landscape”, indicates Mohammed Tahri, managing director of Societe Generale Morocco and member of the management board.
Accelerate construction of the ecosystem
Beyond user protection, Takaful is also an instrument for developing financial inclusion. “10 to 15% of Moroccans do not take out insurance contracts for religious reasons,” notes Taoufik Lachker Hidara, managing director of La Marocaine Vie and chairman of the board of directors of Al Maghribia Takaful.
To capture this potential, it will be necessary to accelerate the construction of the ecosystem. “We consider that the sites are progressing at the right pace. Morocco has worked on a regulation that corresponds to its own vision. It is a model that allows us to build something safe and sustainable,” defend the leaders.
While operators deal with the most urgent matters by providing a solution to people’s protection needs, the deployment of investment products in particular is linked to the existence of a dynamic capital market. “If we don’t have a dynamic and liquid sukuk market, we will have difficulty developing investment products,” observes Taoufik Lachker Hidara.
The Takaful model is based on the principles of general assistance and voluntary contribution. The Takaful company will be the manager of a fund to which each insured contributes (called a participant). The risk is pooled collectively and voluntarily by the participants.
The Takaful company manages the fund for a fee, capped at 30%, to cover technical charges and management fees. The management contract also provides that the Takaful operators distribute all of the technical benefits to the policyholders.
Franck Fagnon / ECO Inspirations