An ambitious new program contract

The insurance federation and the department of insurance and social welfare (DAPS) unveiled the new program contract whose 2015 targets seem to be very promising. This document provides for the implementation of seventy measures, some of which require adjustments of the regulations. The flagship adjustments consist in turning the taxes of insurance contract into VAT and granting priority to long-term savings.

Life insurance will, therefore, benefit from a favorable tax framework to make it more attractive. Financial investments will partially support SMEs and SMIs up to 23 billion MAD (2.9 billion USD) minimum. Insurers will have to align with international accounting standards.

New compulsory insurance covers will be introduced including contractors’ all risks, decennial and housing third party liability along with other third party liability schemes. New professional licenses will be granted and a training plan will be devised.