Insurance premiums up. Inflation, security conditions influence sector - Lebanon

Insurance premiums up
Inflation, security conditions influence sector
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Insurance premiums for the first six months in 2013 reached $739 million, up by seven percent year-on-year, according to the Association of Insurance Companies (ACAL).

Life premiums totaled $200 million at end-June, up by eight percent. However premiums in the first half of 2012 had risen by 23 percent compared to the same period in 2011. “This drop is due to lower sales resulting from the security situation that has affected the economic cycle,” said Fateh Bekdache, General Manager of Arope Insurance.

Medical insurance premiums grew by 11 percent to $240 million. “This rise is the result of inflation, all hospital bills, medical machines, and doctors’ fees are increasing today, and clients prefer to buy medical premiums,” said Bekdache. The ACAL report noted that the number of private subscribers grew by 20 percent to 355,722 at end-June.

Motor insurance premiums grew by one percent to $162 million. He said that the results over the six months cannot be taken as a benchmark since they are mostly caused by a rise in car imports. The average premium of compulsory motor insurance remained low at $49 but administrative costs dropped to $26 per contract, down by nine percent year-on-year.
Reported by Joelle Nassar
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Date Posted: Sep 17, 2013