The Lebanese insurance market

Photo credit: US Gov / CIA World Factbook

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 USD

Top 30 of non-life insurance companies

in USD
RankCompany2002 premium2001 premium
1MEDGULF46 745 00039 050 000
2BANKERS39 175 00035 735 000
3AXA MIDDLE EAST22 310 00022 945 000
4S.N.A.18 980 00018 360 000
5LIBANO SUISSE18 830 00018 150 000
6ALICO14 320 00015 570 000
7MASHREK16 350 00014 420 000
8CUMBERLAND13 385 00012 410 000
9FIDELITY12 180 00011 215 000
10LIBANO ARABE11 965 00010 325 000
11AROPE10 025 0009 365 000
12U.F.A.7 770 0003 060 000
13ASSUREX7 155 0007 080 000
14ALIG6 375 0005 235 000
15UNION NATIONALE6 250 0006 645 000
16COMPASS6 055 0006 215 000
17AL FAJR6 005 0004 235 000
18COMMERCIAL5 930 0005 600 000
19SECURITE5 785 0005 160 000
20PHENICIENNE5 070 0003 805 000
21U.C.A.4 785 0004 515 000
22NORTH4 425 0005 610 000
23ADIR4 000 0003 380 000
24ALPINA3 855 0003 26 0000
25BERYTUS3 455 0003 810 000
26ARABIA3 050 0002 380 000
27I.T.I.2 770 0002 060 000
28CAPITAL2 735 0002 000 000
29C.I.G.2 705 0002 660 000
30A.U.G.2 670 0002 780 000
Source : Insurance in Lebanon de J. Zakhour

The first 10 companies own 63% of the non-life market premium.

Top 30 of life insurance companies

in USD
RankCompany2002 premium2001 premium
1ALICO60 000 00056 125 000
2SOGECAP16 289 0001 730 000
3SNA14 520 00013 430 000
4BANCASSURANCE9 586 0005 667 000
5LIBANO SUISSE2 844 0002 835 000
6ADIR2 471 0002 160 000
7LIBANO ARABE2 281 0002 075 000
8UFA2 246 000137 000
9CLA1 874 0001 475 000
10MEDGULF1 580 0001 660 000
11BANKERS1 580 0001 490 000
12AROPE1 558 0001 500 000
13AXA MIDDLE EAST1 042 000828 000
14MASHREK852 000902 000
15ASSUREX831 000867 000
16ARABIA749 000511 000
17UCA740 000562 000
18SECURITE591 000508 000
19NORTH500 000540 000
20CAPITAL445 000151 000
21UNION NATIONALE412 000784 000
22ARAB LIFE374 000432 000
23COMPASS265 000254 000
24COMMERCIAL216 000207 000
25C.I.G.199 000185 000
26PHENICIENNE197 000147 000
27AL FAJR147 000142 000
28ARIG LIFE112 00075 000
29FIDELITY101 00010 000
30AMANA96 000115 000
Source : Insurance in Lebanon de J. Zakhour

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
0
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