Double digit growth in Life,
Medical, and Motor claims
The insurance sector made a turnover of around $1.3 billion in 2012, up by four percent from the previous year, according to the annual report of the Association of Insurance Companies in Lebanon (ACAL). The increase in revenue was driven by increases in the prices of premiums, rather than in the number of contracts. The number of issued contracts fell by 13 percent, to three million, after a growth of around 11 percent in 2011.
Assaad Mirza, Chairman of ACAL, said the sector’s growth in turnover slowed over the past few years: “In 2010 the sector's turnover grew by 22 percent, and in 2009 it had grown by 19 percent.” According to Mirza, in the previous years the insurance sector saw growth in the number of underwritten premiums and in the value of premiums, whereas the latest growth in turnover is just a slight growth in total value.
Life Insurance premiums made up 29 percent of the sector’s turnover and grew by five percent from the previous year. Medical Insurance represented 28 percent of the total value and was up by four percent. “The growth in value is mainly due to higher medical claims because hospital tariffs have increased,” said Mirza.
Growth in policy numbers throughout 2012 was negative. The number of issued contracts in the Life Insurance segment fell by 47 percent. The number of policies in Motor Insurance fell by one percent. The number of compulsive motor insurance contracts grew by three percent, while the number of other motor insurance contracts went down by seven percent. The value of Motor Insurance premiums, which represented 25 percent of all premiums, was almost unchanged.
Fire Insurance premiums grew by ten percent, making up seven percent of the total. The number of fire insurance contracts issued increased by six percent. “Fire Insurance premiums increased in value because there was a reevaluation for real estate and for goods, like warehouses and factories for instance, which were given higher values,” Merza said.
The value of Workmen Insurance and Cargo Insurance premiums, which represent three and 2.7 percent of the sector’s turnover respectively, were up by seven and eight percent. The number of Workmen Insurance contracts issued was up by two percent, while than of Cargo Insurance fell by two percent.
Indemnities paid on policyholders’ claims totaled $650 million, up by 12 percent from 2011.
Medical claims represented 40 percent of all claims, while Motor claims represented 28 percent. Claims from the two segments grew by ten percent each. Life insurance claims accounted for 22 percent of the total claims, up by 31 percent year-on-year.
Date Posted: Mar 18, 2013