The Guide to the Online Selling Device Revealed

The creation of an online sales system is not subject to validation by the Authority. However, it is the responsibility of the operator, before commissioning, to inform ACAPS.

Insurers and reinsurers, intermediaries, banks and microfinance, it’s up to you! The Insurance and Social Security Supervisory Authority has just published the guide for the implementation of an online sales system for insurance products. This initiative comes almost a month after the publication of the respective instruction, which came into force on July 1, 2022.

The Insurance and Social Security Supervisory Authority (ACAPS) has just published the guide for implementing an online sales system for insurance products. This initiative comes almost a month after the publication of the respective instruction, which defines the conditions and modalities that the profession must observe for the implementation of an electronic device for online sales that allows the conclusion of insurance contracts. This instruction, published on June 8th and effective on July 1st, as well as the recently launched guide, are intended for insurance and reinsurance companies, intermediaries (agent or brokerage company) and 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 microcredit associations for personal insurance and fire and theft insurance, taken out by their customers.

In this guide, ACAPS specifies that the digitization of contracts is already foreseen in 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 about 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, this is traditionally provided by an insurance policy written and signed by the parties, a process that can also be digitized. It is concluded that distance contracting exists in practice. Thus, the new instruction details and formalizes the process of configuring a device for this distance sale. As for the guide, it reviews the principles related to the formation of an insurance contract, before detailing the legal framework that governs online sales (VEL), in particular Law No. nº 53 -05 concerning the electronic exchange of legal data and, therefore, the instruction concerning 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 path for the presentation of the products, namely the terms of subscription and signature of the contract. In addition to devices limited to advertising, the insurer/distributor can opt for an end-to-end device, with an electronic signature, or a device with a handwritten/physical contract signature. The creation of an online sales system for insurance products is not subject to validation by the Authority. However, it is up to the operator, before it goes into operation, to inform ACAPS, sending it certain information and documents, including a presentation sheet, namely the address of the device that allows all phases of the subscription process and the conditions premium payment. In the case of electronic signature, the operator must submit a report attesting that this signature process complies with regulatory requirements. This report must also attest to the conformity of the procedure for drawing up and maintaining the contracts. If the contract is concluded on paper, ACAPS requests a description of the terms and conditions for sending the contract and signed return, as well as the chosen option (insurance offer or online conclusion). Furthermore, in case of alteration or modification of the already existing system, the insurer or the distributor must inform the Autorité of all the modified aspects.

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