Lebanon: Insurers pay out less than 10% of claims 12 months after Beirut Port blast
Source: Middle East Insurance Review | Sep 2021
Of an estimated $1.1bn in insured losses caused by the August 2020 Beirut Port explosion, only about $100m have been paid to date, according to Association of Insurance Companies of Lebanon board member and the CEO of Capital Insurance & Reinsurance Assaad Mirza.
He told the newspaper The National that 16,000 claims are pending the outcome of an official investigation into the blast, which killed at least 190 people and injured 7,000 across the capital.
Insurers have yet to pay compensation in full because they are awaiting the findings of the investigation. Should the judge leading the investigation rule that the blast was the result of an act of war or terrorism, 80% of the insurance claims will not be covered, Mr Mirza said.
That possibility and a lack of trust in the Lebanese authorities have prompted many to settle claims with insurance companies at a significant discount.
Of the $100m in paid claims, the bulk was related to insurance policies that specifically covered acts of war and terrorism, Mr Mirza said. M