The Moroccan government has decided to raise the solidarity tax against natural disasters from 1% to 1.5% on insurance premiums and contributions. This decision, approved by the Council of Government, aims to enhance the resources of the Solidarity Fund for Catastrophic Events (FSEC), which is responsible for compensating uninsured victims.
This measure comes in response to the increasing frequency of climate disasters and a sharp rise in global reinsurance costs. The Al Haouz earthquake in September 2023 highlighted the vulnerability of the fund, significantly increasing the cost of covering seismic risks.
This coverage was initially established under Law 110-14 in January 2020, based on two complementary pillars: insurance dedicated to policyholders and a solidarity mechanism for uninsured individuals. With the tax increase, the fund will be able to mobilize stronger resources, allowing for quicker and more effective compensation for both insured and uninsured victims.
The tax encompasses a wide range of insurance contracts: cars, marine and air transport, loans, personal accidents, illnesses, fires, hail, natural disasters, and even livestock losses. However, certain categories are exempt, such as life insurance contracts signed by non-residents or those related to risks occurring outside Morocco.
Through this decision, Morocco reaffirms its commitment to enhancing its resilience against natural shocks and ensuring an effective and equitable financial response when disasters occur.
