# **Table Contents**

|1. Introduction ...................................................................................................................................... 4|
|---|
|2. The Insurance Sector in MENA: An Overview of Development Patterns ..................................... 4|
|2.1. The Small Size of the Insurance Sector: Basic International Comparisons............................. 4|
|2.2.The Small Size of the Insurance Sector: Controlling for Income Levels and Demographics .. 6|
|2.3 The Small Size of the Insurance Sector: Identifying the Constraining Factors ........................ 9|
|3. Main Business Lines ....................................................................................................................... 9|
|4. Industry Structure and Performance ............................................................................................. 13|
|4.1. Overview of Market Structure ............................................................................................... 13|
|4.2. Signs of Excessive Fragmentation in MENA‟s Insurance Markets ....................................... 15|
|4.3. Lack of Professional Skills in the Industry ............................................................................ 17|
|5. Main Regulatory and Supervisory Issues ..................................................................................... 18|
|5.1 Regulation ............................................................................................................................... 18|
|5.2. The Supervisory Framework.................................................................................................. 22|
|6. Stages of Insurance Development in MENA: A Preliminary Classification .................................. 24|
|7. The Case of Morocco ...................................................................................................................... 24|
|8. Roadmap for Developing the Insurance Sector in MENA ............................................................ 26|
|8.1. Introducing additional compulsory insurance and enforcing the existing ones ..................... 26|
|8.2. Reducing the share of State-owned Insurers .......................................................................... 27|
|8.3. Strengthening Regulation and Supervision ............................................................................ 27|
|8.4. Improving the Tax Regime .................................................................................................... 30|
|8.5. Developing Takaful Insurance ............................................................................................... 31|
|8.6. Developing Human Capital.................................................................................................... 31|
|Annex Table 1: Income Levels and Demographic Characteristics ..................................................... 33|
|Annex Table 2: Relevant Policy Variables ......................................................................................... 34|
|Annex Table 3: Stylized Non Life Insurance Development Model ................................................... 35|
|Annex Table 4: Compulsory Insurance Lines .................................................................................... 36|
|Annex Table 5: Development Drivers of the Life Insurance Industry ............................................ 37|
|Annex Table 6: Development Drivers of the Non-Life Insurance Industry ....................................... 38|
|Annex Table 7: Distribution channels ................................................................................................ 39|
|Appendix: Takaful (Cooperative) Insurance ..................................................................................... 40|

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