American Journal of Engineering Research (AJER) 2017 American Journal of Engineering Research (AJER) e-ISSN: 2320-0847 p-ISSN : 2320-0936 Volume-6, Issue-8, pp-90-95 www.ajer.org Research Paper Open Access www.ajer.org Page 90 The impact of the implementation of solvency II standards on the Moroccan insurance market AIT KASSI Mustapha 1 , CHEGRI Badre Eddine 2 , HINTI Saïd 3 1 (Department of Economics, Faculty of law and Economics / University Mohammed V of Rabat, Morocco) 2 (Department of Economics, Faculty of law and Economics / University Mohammed V of Rabat, Morocco) 3 (Department of Economics, Faculty of law and Economics / University Mohammed V of Rabat, Morocco) Corresponding Author: AIT KASSI Mustapha ABSTRACT: This paper aims at identifying and analyzing the impact of the implementation of solvency II standards on the Moroccan insurance market. We will address the experience of the European countries that was brought into force in January 2016 and has improved - since then - the solvency of the insurance companies in there. That being said, the following lines will address the strength of the solvency II programs on the Moroccan insurance market, and how it will impact and enhance the performance of the insurance companies in Morocco. Key words: Insurance companies, Moroccan insurance market, solvency and Solvency II, --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 12-08-2017 Date of acceptance: 14-08-2017 --------------------------------------------------------------------------------------------------------------------------------------- I. INTRODUCTION The strengthening of solvency standards in the insurance companies has become vital in order to build a trust scheme with applicants that demand life and non-life insurance products. According to the solvency II directive, the prudential standard system will reinforce the international competitivity of European insurance companies. The alignment of regulatory requirements will lead to optimize the allocation of capital not just at a company level, but also within the insurance market and EU as a whole. Therefore, raising capital will most likely be less expensive to the insurance market and also to the European economy since the insurer has the role of an institutional investor. There will be more efficient allocation of capital and risks in the economy and financial stability in the short and the long term. II. ISSUE After a long preparatory phase, the prudential solvency II system entered into force on January 1 st , 2016 in Europe; purposefully, to insure solvency across insurance companies. Morocco should implement it to strengthen its current system, in the upcoming years. So, how can we measure the impact of the introduction of the prudential solvency system “Solvency II” on the Moroccan insurance market? III. METHODOLOGY For this research study, we conducted a quantitative approach by designing a survey for the Moroccan insurance companies. Indeed, our sample size consisted of 50% of insurance companies. The sample size is based on the proximity, the importance and the size of the entity and the accessibility of the market. In order to reach different insurance companies in Morocco, we conducted the survey and collected information from some of the big insurance companies in the Casablanca – Rabat area. In this research we were able to attain very important results in spite of many methodological and practical challenges which arose during that phase, namely: refusal of some of the companies’ managers to cooperate for confidentiality reasons, difficulty to contact directly the target companies etc....