the risks faced by insurance companies around the world

L’Economist Marc Touati, during a remote intervention during the Casablanca Insurance Meetings, congratulated the Moroccan insurance sector for its robustness. Insurance, as the speaker noted, plays a key role in economies facing various challenges. It provides protection and stability, enabling investment and innovation.

“The global financial crisis and the coronavirus pandemic have tested the sector, but despite alarmist forecasts, companies have survived, proving the sector’s ability to turn crises into opportunities,” he notes.

Experience shows that the fundamental rules of the economy do not change and that the risk is proportional to the return. This simple saying is a guideline for financial advisors, Touati explains: High returns mean higher risks. However, the intervention also exposed past mistakes, such as the subprime crisis, where the rule was ignored, leading to disastrous consequences. Today, another risk looms on the horizon: public debt management and inflation.

Since 2015, the excessive issuance of currency by central banks, without any real counterpart, has led to an increase in debt. These policies may threaten long-term financial and economic stability. The expert also mentioned the geopolitical and climatic challenges weighing on the global economy: “infinite growth in a finite world is not sustainable; However, degrowth is also not a viable option as it could lead to a dramatic drop in living standards, especially in emerging countries.

The solution lies in optimization and technological innovation, which can create prosperity without further harming the planet. The insurance sector, by raising funds and financing long-term investments, can play a key role in supporting this sustainable growth. Finally, the speaker emphasized the need for continuous training in the sector to anticipate and manage future risks.

The moral of the speech was clear: despite obstacles, there are always paths to progress. Perseverance and adaptability are crucial, and with careful and informed management, the insurance industry can not only survive but thrive, supporting economic growth and contributing to public well-being.