Middle East - Lebanon: Insurance sector grew at least 3-4% in 2015- ACAL
Source: Middle East Insurance Review | Feb 2016
The Lebanese insurance market is estimated to have grown by at least 3-4% last year, according to Mr Max Zaccar, President of the Association of Insurance Companies in Lebanon (ACAL).
He said in a recent interview with Executive magazine: “Figures show that we had a 6% increase in our premium income in the first quarter. It was less in the second quarter and growth dropped back to 1%, but I believe we will end the year with an increase of at least 3% or 4%, as we did in 2014.”
He said that with economic growth in 2015, insurers saw an increase in all lines of insurance. “The only problem is the intensity of competition. Competition has brought rates down and that is why the increase in total premiums is not as much as it should be. Thus, having a 4-5% increase in premiums for 2015 will be a very good result,” he said.
He said that the insurance sector had demonstrated to the authorities that it is serious in thinking about insuring the oil and gas industry. “We want to make an insurance pool by the ACAL member companies that will be managed by ACAL,” he added.
Regarding the issue of mandating oil companies to rely on local insurers, he said that the insurance industry has asked for a change in the law which has yet to be finalised. The proposal has the support of the Lebanese Petroleum Administration (LPA) and the Ministry of Energy.
On regulatory developments in 2016, he said: “The problem with all legal statutes is that everything is frozen and so we don’t see any real change. We have a very good Minister of Economy who comes from the banking sector and understands the need of the insurance market.”
In 2014, premiums in Lebanon grew by 4.6% to reach US$1.5 billion. Consolidated net income jumped by 24% to $142 million because of lower losses in motor insurance.