Small and medium businesses currently make up 98% of Morocco’s economic fabric.
Rabat – At its “Breakfast Series” conference in Casablanca today, July 5, Upline Courtage, shared insights into the private insurance options for small and medium sized businesses.
Upline Courtage is the insurance advisor for the Moroccan banking group Banque Centrale Populaire (BCP).
Small and medium businesses play a key role in Morocco’s economy. According to the Moroccan Confederation for Very Small and Small to Medium Businesses (VSBs and SMBs), these companies make up 98% of Morocco’s economic fabric.
Millions of Moroccans are employed in VSBs and SMBs, making it essential for these companies to consider insurance options for employees, in case of illness or death, and in relation to retirement and maternity payments.
Private insurance can also bridge gaps in public social security. A 2018 report by UNICEF describes Morocco’s social security as “fragmented when it comes to financing, services, conditions of obtention and administration.” The report adds the system is “characterized by its weak coverage.”
Morocco has a pension system in place, but according to UNICEF, coverage is limited; “only 20% of people aged 60 and above receive a pension.”
At the breakfast series, the director of Upline Courtage, Khalid Boussaid, noted that pension payments can be low.
“Sometimes you can find yourself at 60 years old, with a slim pension. You can be on the brink of poverty,” he warned.
Ghezala Monsif, BCP’s Market Leader for Small and Medium Businesses highlighted that insurance for VSBs and SMBs is a “topical theme.”
In Morocco, many companies need to find solutions for holding on to human resources, Monsif explained.
“Social security is a non-financial solution for companies wanting to hold on to their flighty, unique, and qualified staff.”
“Companies must be proactive to respond to issues in the markets,” he added.
The Director of Attamine Chaabi, an insurance product of BCP, then explained key offerings of the Attamine Chaabi scheme.
Having private insurance options makes a firm more attractive to its employees with Brain drain remaining as a concern for Moroccan employers.
According to the Ministry for Education, more than 600 engineers leave each year to Morocco to pursue career opportunities abroad.
These Moroccans are immigrating in search of better salaries and job prospects meaning that local companies are facing the challenge of retaining their staff.
Upline Courtage organizes a bi-annual breakfast series, exploring insurance issues of key importance to BCP’s clients.
Today was the third breakfast series run by Upline Courtage. The first event held in April 2018 touched on insurance options in the construction sector.
The second event, in February of this year, explained default risks.