News Middle East22 Nov 2020

Lebanon:Insurance sector posts 6% fall in premiums in 1H

| 22 Nov 2020

Insurance premiums generated in Lebanon totalled $822.8m in the first half of 2020, constituting a decrease of 6% from $874.3m in the same half of 2019, reveal data released by the Association of Insurance Companies in Lebanon (ACAL).

Premiums reached $429m in the first quarter of this year and $393.7m in the second quarter, according to an article in “Lebanon This Week” published by the Economic Research & Analysis Department of Byblos Bank, which cited the ACAL data.

The breakdown of premiums posted by the different classes of business in the first six months of the year is as follows:

Class

1H2020

Premiums $m

Market

share %

Y-o-Y

change

Medical

348.7

42.4

+8%

Life

204.8

24.9

-14%

Motor

146.3

17.8

-13%

Fire

58.1

7.1

-2%

Workmen's compensation

21.1

2.6

-22%

Cargo

16.0

1.9

-22%

Public liability

9.1

1.1

-12%

Others

17.9

2.2

-33%

 

Medical insurance premiums grew by 8% year-on-year in the first half of 2020, posting the only increase among all branches of business.

Further, medical insurance premiums covering Lebanese residents grew by 8% year-on-year to $344.2m in the first half of 2020, while premiums covering Lebanese expatriates decreased by 24% to $4.6m.

Claims

ACAL indicated that benefits and claims paid by insurance companies stood at $531.1m in the first half of 2020, constituting an increase of 8% from $490m in the same period of 2019. Benefits and claims reached $274.2m in the first quarter and $257m in the second quarter of 2020. Benefits and claims paid for the non-life categories totalled $337.2m in the first half of 2020 and decreased by 5.6% from $357.4m in the same half of 2019, while claims disbursed for the life insurance category amounted to $193.8m and increased by 46% from $132.5m in the same period of 2019.

The branches of insurance with the highest claim payouts in the first half of the year were: medical insurance, which accounted for 41.4% of total claim payments in the first half of 2020; life insurance claims (36.5%), and motor insurance (14.2%).

Life insurance claims surged by 46% year-on-year in the first half of 2020, fire claims rose by 20%, medical claims increased by 9%, and cargo claims grew by 8%. In contrast, engineering insurance claims declined by 75% in the first six months, public liability claims dropped by 40%, motor insurance claims fell by 27%, and workmen compensation claims decreased by 14%.

Life insurance

Protection with savings policies accounted for 62.3% of total life insurance premiums and for 14% of the number of life insurance contracts in the first half of 2020, while life protection plans represented 37.7% of life insurance premiums and 86% of the number of life contracts during the covered period.

 

 

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