Lebanon: Insurance companies need to be more active in the energy sector

The Lebanese insurance companies are required to diversify their insurance products as Lebanon is preparing to invest in the exploration of its oil and gas resources.

The insurance industry needs to acquire new tools that would allow it to provide services tailored to large projects. The adoption of an effective management model should be anticipated before tackling this kind of risk.

Unlike other Arab countries whose most oil installations are reinsured by foreign companies, the Lebanese insurance companies should join forces and create an energy insurance pool to cover such risks.

According to Max Zaccar, new president of the Association of Insurance Companies in Lebanon (ACAL), the Lebanese companies that have achieved 1.5 billion USD in premiums in 2014 and which have shareholder's equity of 1 billion USD, can approach their professional association (ACAL) to help manage this pool.