The guide to the online sales device unveiled

The setting up of an online sales system is not subject to the Authority’s validation. However, it is the responsibility of the operator, prior to its commissioning, to inform ACAPS.

Insurance and reinsurance companies, intermediaries, banks and microfinance institutions, this concerns you! The Insurance and Social Welfare Supervisory Authority has just published the guide for setting up an online insurance product sales system. This initiative may take place one month after the publication of the related instruction, which entered into force on July 1, 2022.

The Insurance and Social Welfare Supervisory Authority (ACAPS) has just published the guide for setting up an online insurance product sales system. This initiative may take place one month after the publication of the relevant instruction which sets out the conditions and methods that the profession must observe for the implementation of an electronic online sales device allowing the conclusion of insurance contracts. This instruction, published on June 8 and entered into force on July 1, as well as the newly launched guide, is intended for insurance and reinsurance companies, intermediaries (agent or brokerage firm) and also other entities authorized to present insurance operations to the public. These include Barid Al-Maghrib and banks for personal insurance, assistance and credit insurance, and micro-credit associations for personal insurance and fire and theft, contracted by their customers.

In this guide, ACAPS specifies that the digitization of contracts is already provided for by the Moroccan regulatory framework, in particular the Dahir forming the code of obligations and contracts. This stipulates that “electronic means may be used to make contractual offers or information on goods or services available to the public with a view to concluding a contract”, provided that a reliable and secure exchange, consent and sharing of the essential elements of the contract. As for the proof of the contract, it is traditionally ensured by a written insurance policy signed by the parties, a process which can also be digitized. It follows that distance contracting exists in practice. Thus, the new instruction details and formalizes the process of setting up a device for this distance selling. As for the guide, it reviews the principles related to the formation of an insurance contract, before detailing the legal framework governing online sales (VEL), in particular Law No. 31-08 enacting protective measures of the consumer, the law n°53-05 relating to the electronic exchange of legal data and therefore the instruction relating to the devices dedicated to this sale. According to ACAPS, an online sales device is any device that uses the Internet to offer insurance products for sale.

The operator is confronted, when designing his device, with the choice of the exact course of the presentation of the products, in particular the methods of subscription and signature of the contract. Apart from devices limited to advertising, the insurer/distributor can either opt for an end-to-end device, with electronic signature, or a device with handwritten/physical signature of the contract. The implementation of an online insurance product sales system is not subject to the Authority’s validation. It is, however, incumbent on the operator, prior to its commissioning, to inform ACAPS by sending it certain information and documents including a presentation sheet, in particular the address of the device allowing all the stages of the underwriting process and the terms of payment of the premium. In the case of electronic signature, the operator must submit a report certifying that this signature process complies with regulatory requirements. This report must also certify the conformity of the procedure for drawing up and keeping the contracts. In the case of signature of the contract in paper format, ACAPS requests a description of the methods of sending the contract and its return as well as the option chosen (insurance offer or conclusion online). Furthermore, in the event of a change or modification of the system already in place, the insurer or the distributor must inform the AutoritĂ© of all the modified aspects.

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