Supervision of business practices

The international standards for the supervision of the insurance industry give paramount importance to the supervision of commercial practices/business conduct. The main objective of this supervision is to preserve a balanced and transparent relationship between the actors of the insurance sector and their customers, thus contributing to the establishment of a relationship of trust between the two parties and, consequently, to the development of the insurance industry as a whole.

As such, Law no. 64-12 establishing the Authority provides in its Article 6 that the ACAPS works for the development of activities falling within its scope and the respect of good practices for their conduct. It also contributes to a better awareness and sensitization in this field. Similarly, the Authority ensures that the entities under its supervision comply with the rules for the protection of policy-holders, beneficiaries of insurance contracts and affiliates, in accordance with the provisions of Law no. 17-99 on the Insurance Code and the legislative and regulatory provisions relating to social welfare.

Within this framework, the Authority oversees and supervises the business practices of insurance companies and the distribution network of insurance products. This supervision,, which focuses on advertising, websites and conduct guidelines, aims to ensure that operators in the insurance sector:

• provide policy-holders with all the information they need to make an informed decision about their insurance contract;
• deal with clients with the required integrity, competence, care and diligence;
• meet their commitments under the insurance contracts.

In this context, the Authority carries out on-site and off-site inspections.

In addition, concerning the distribution network and in order to ensure compliance with the operating and management conditions provided for in Book IV of Law no. 17-99 on the Insurance Code and the texts adopted for its implementation, the Authority carries out on-site inspections of insurance brokers, covering the entire territory of the Kingdom, within the framework of an annual inspection program designed on a risk-based approach. Missions are also initiated following complaints received by the Authority against insurance brokers.