Despite reforms, the sector’s situation remains paradoxical

Following the boom which resulted in an average annual increase in premium volume of 12% between 1990 and 1998, the insurance market has witnessed two important stages: The 1999 law which reduced from 70 to 55 the number of operators and the 2001 regulation pertaining to the increase of the companies' share capital from 200 000 USD to 1.5 million USD.

But despite these reforms, analysts believe that the market remains fragmented, relatively under-capitalised and subject to stiff competition by an excessive number of operators, considering the market's size. This finding plainly justifies the discrepancy between the annual premium volume of 500 million USD – which puts Lebanon in the leadership of the region (United Arab Emirates excluded) in terms of per-capita rates, and the low proportion of insured population (25%).

In order to resolve this situation deemed paradoxical, Abraham Matossian, Chairman of the Association of Lebanese Insurers (ACAL), has called upon the authorities to take the required necessary measures.