Multi-agent simulation of the Moroccan conventional insurance sector

Abstract

Economic and social change in a digital era is making the insurance ecosystem more complex. It makes several agents interact for different purposes. Therefore, a reflection on the insurance ecosystem modelling through multi-agent simulation seems interesting since it allows to capture the complexity of today’s insured on the one hand and on the other hand to measure the solvency of insurance and reinsurance companies (EAR) in order to ensure the viability of the said ecosystem. Thus, this research aims at modeling the Moroccan insurance ecosystem within the framework of a new risk-based solvency directive for the case of loan death cover and on the basis of a set of exogenous and endogenous factors that influence the solvency of insurance and reinsurance companies in Morocco. This paper is carried out on the basis of a model, developed using NetLogo software, consisting of 4 agents that interact in the case of the “borrower’s death” guarantee, namely: the insured, the EAR, the banks and the Supervisory Authority of Insurance and Social Welfare (ACAPS). Each agent has a set of characteristics and seeks a defined objective. Thus, the modelling carried out allows testing the impact of endogenous and exogenous variables on the solvency of the EAR according to a simulation in three scenarios (central, rainy and risky).