The government of Morocco is now aiming to prepare a regulatory framework to allow for the securitization of insurance risks, including through catastrophe bonds, as the country seemingly aims to support issuance as well as to be a beneficiary of risk transfer to the capital markets.
Morocco’s ministry of finance published its Finance Bill for fiscal year 2027 this week and while the wide-ranging budgetary document deals with numerous of the countries needs, disaster risk financing and insurance is a notable feature of it.
It’s particularly notable to see the mention of Morocco having a goal to construct its own regulatory framework for the securitization of insurance risks, as a way to bring third-party capital more directly into the country to support natural disaster, catastrophe and climate risk transfer.
Modernising the financial and capital market infrastructure in Morocco is a key goal and the country recognises the opportunities presented by regulating for more efficient financing.
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