The devastating earthquake that struck Morocco on 8 September 2023 affected an area with low insurance penetration. However, a new commentary from AM Best notes that a parametric insurance arrangement covering part of Morocco’s National Catastrophic Event Coverage Scheme is expected to be triggered and could result in a maximum payout of MAD 2,750 million (approximately USD 270 million).
The Best’s Commentary, “Industry-Backed Solutions Likely to Support Morocco Earthquake Relief Despite Low Insurance Penetration,” states that the Solidarity Fund for Catastrophic Events, which is the part of the scheme covered by the parametric arrangement, provides coverage to the uninsured and most vulnerable part of the population.
Additionally, since 2020, Morocco has had in place a USD 275 million Deferred Drawdown Option for Catastrophe Risk provided by the World Bank, which is expected to provide the country with immediate liquidity to address the natural disaster it faces.
To access a complimentary copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=335725.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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