Insurance World

Morocco: 1 in 2 Agencies Is At Risk Of Bankruptcy This Year

Insurance agencies have seen their revenues plummet by 70% since the emergence of COVID-19.

There are an estimated 1,200 agencies at risk of bankruptcy or permanent closure. This figure is alarming in a market that has around 2,100 intermediaries which generate at least 60% of the turnover of the sector, reported La Vie Eco.

This is in addition to difficulties which plague their activities (problems of commissioning and income, the VAT issue, etc.) even before the pandemic erupted.

Intermediaries allege that insurance companies have contributed to the fall in the turnover of agencies through a decision to reduce their commission in proportion to the 30% discount granted to policyholders during the pandemic lockdown period.

This decision sparked outrage among the ranks of intermediaries. Some have seen their incomes drop drastically (by up to 70%), combined with increased costs due to deliveries, staff transport and installation of distancing or remote measures, borne entirely by the intermediaries alone.

Source MEIR

Tags

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *