The Lebanese insurance market
insurance market features
- Regulatory authority: Ministry of economy and trade
- Written premiums (2002): 467 millions USD
- Insurance density: 117 USD per capita
- Insurance penetration ratio: 3%
Market structure in 2002
- Number of insurance companies: 60
- Number of reinsurance companies: 5
- Foreign insurers and brokers are authorised by the Ministry of economy and trade to operate in Lebanon
- Multinational insurance companies in Lebanon: Alpina (Switzerland), Alico (USA) and AXA (France)
- Reinsurers: General-Cologne Re, ERC Frankona, CCR France, Arab Re and Best Re
- Hundreds of insurance brokers and local intermediaries are working in the Lebanese market
- International brokers operate in Lebanon within the framework of partnership: Gras Savoye, Marsh
Identity
- Area: 10,452 Km²
- Population (2002): 4 000 000 inhabitants
- GDP (2002): 17.3 billion USD
- GDP per capita (2002): 4.325 USD
- GDP growth ratio (2002): 1.5%
- Inflation rate (2002): 3.5%
- Main economic sectors : Tourism, services, food products, agriculture
Main cities
(in number of inhabitants)
- Beyrouth: 1 500 000
- Tripoli: 160 000
- Baalbek: 150 000
- Tyr: 80 000
- Zahle: 45 000
- Saida: 38 000
2002 turnover
Development of the market turnover 1998-2002
in thousands USDTop 30 of non-life insurance companies
in USDRank | Company | 2002 premium | 2001 premium |
---|---|---|---|
1 | MEDGULF | 46 745 000 | 39 050 000 |
2 | BANKERS | 39 175 000 | 35 735 000 |
3 | AXA MIDDLE EAST | 22 310 000 | 22 945 000 |
4 | S.N.A. | 18 980 000 | 18 360 000 |
5 | LIBANO SUISSE | 18 830 000 | 18 150 000 |
6 | ALICO | 14 320 000 | 15 570 000 |
7 | MASHREK | 16 350 000 | 14 420 000 |
8 | CUMBERLAND | 13 385 000 | 12 410 000 |
9 | FIDELITY | 12 180 000 | 11 215 000 |
10 | LIBANO ARABE | 11 965 000 | 10 325 000 |
11 | AROPE | 10 025 000 | 9 365 000 |
12 | U.F.A. | 7 770 000 | 3 060 000 |
13 | ASSUREX | 7 155 000 | 7 080 000 |
14 | ALIG | 6 375 000 | 5 235 000 |
15 | UNION NATIONALE | 6 250 000 | 6 645 000 |
16 | COMPASS | 6 055 000 | 6 215 000 |
17 | AL FAJR | 6 005 000 | 4 235 000 |
18 | COMMERCIAL | 5 930 000 | 5 600 000 |
19 | SECURITE | 5 785 000 | 5 160 000 |
20 | PHENICIENNE | 5 070 000 | 3 805 000 |
21 | U.C.A. | 4 785 000 | 4 515 000 |
22 | NORTH | 4 425 000 | 5 610 000 |
23 | ADIR | 4 000 000 | 3 380 000 |
24 | ALPINA | 3 855 000 | 3 26 0000 |
25 | BERYTUS | 3 455 000 | 3 810 000 |
26 | ARABIA | 3 050 000 | 2 380 000 |
27 | I.T.I. | 2 770 000 | 2 060 000 |
28 | CAPITAL | 2 735 000 | 2 000 000 |
29 | C.I.G. | 2 705 000 | 2 660 000 |
30 | A.U.G. | 2 670 000 | 2 780 000 |
The first 10 companies own 63% of the non-life market premium.
Top 30 of life insurance companies
in USDRank | Company | 2002 premium | 2001 premium |
---|---|---|---|
1 | ALICO | 60 000 000 | 56 125 000 |
2 | SOGECAP | 16 289 000 | 1 730 000 |
3 | SNA | 14 520 000 | 13 430 000 |
4 | BANCASSURANCE | 9 586 000 | 5 667 000 |
5 | LIBANO SUISSE | 2 844 000 | 2 835 000 |
6 | ADIR | 2 471 000 | 2 160 000 |
7 | LIBANO ARABE | 2 281 000 | 2 075 000 |
8 | UFA | 2 246 000 | 137 000 |
9 | CLA | 1 874 000 | 1 475 000 |
10 | MEDGULF | 1 580 000 | 1 660 000 |
11 | BANKERS | 1 580 000 | 1 490 000 |
12 | AROPE | 1 558 000 | 1 500 000 |
13 | AXA MIDDLE EAST | 1 042 000 | 828 000 |
14 | MASHREK | 852 000 | 902 000 |
15 | ASSUREX | 831 000 | 867 000 |
16 | ARABIA | 749 000 | 511 000 |
17 | UCA | 740 000 | 562 000 |
18 | SECURITE | 591 000 | 508 000 |
19 | NORTH | 500 000 | 540 000 |
20 | CAPITAL | 445 000 | 151 000 |
21 | UNION NATIONALE | 412 000 | 784 000 |
22 | ARAB LIFE | 374 000 | 432 000 |
23 | COMPASS | 265 000 | 254 000 |
24 | COMMERCIAL | 216 000 | 207 000 |
25 | C.I.G. | 199 000 | 185 000 |
26 | PHENICIENNE | 197 000 | 147 000 |
27 | AL FAJR | 147 000 | 142 000 |
28 | ARIG LIFE | 112 000 | 75 000 |
29 | FIDELITY | 101 000 | 10 000 |
30 | AMANA | 96 000 | 115 000 |
The first 10 companies own more than 90% of the life market premium.
Regulation
- Premiums and commissions remitted to non resident companies and brokers are subject to maximum income tax of 2%
- For the other companies, a 9% to 11% tax is put on the premiums, excepting life premiums
- Marine and aviation premiums are subject to a 9% tax
- Each insurance company should have an actuary adviser
- The arbitration council is in charge of solving the litigations not exceeding 50 000 USD
Prospects
- The obligatory motor insurance law in force since 05/04/2003 would stimulate the sector
- Tendency to the regrouping between insurers (ex. the merger between Trust International Insurance and Al Fajr Insurance and Reinsurance)
- Growing interest for the bancassurance
- Project to ban the 9% tax which marine and aviation premiums are subjected to
Exchange rate USD/LBP as 31/12/2003 | 1998 | 1999 | 2000 | 2001 | 2002 |
1516.1 | 1507.8 | 1526.9 | 1506.1 | 1508.5 |
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