By Celestine Okorie

Despite their geographic proximity and many commonalities, the insurance markets of Morocco, Algeria and Tunisia have significant differences – economic, demographic and cultural. A new AM Best report, “The Maghreb – One Region, Three Unique Insurance Markets,” examines the long-term prospects of the three insurance markets of the Maghreb region.

Over the past five years, all three Maghreb insurance markets have demonstrated solid growth trajectories, above global market averages. That trend is expected to persist, despite the near-term challenges of the COVID-19 pandemic and the associated economic downtown.

However, AM Best in its Best’s Market Segment Report notes there are numerous challenges in the short- to medium-term, which have the potential to limit the region’s insurance expansion. These challenges include political and economic pressures, the population’s negative perception of insurance and the evolving nature of regulatory and governance frameworks. In addition, the COVID-19 pandemic, and its knock-on effects on financial markets and economies worldwide, is expected to adversely impact the growth prospects of local insurers in the near term.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.