Insurance premiums will
grow by 25 percent till 2017
Regional stability would find new growth opportunities for insurance companies
Insurance premiums are expected to grow at an annual average between 20 percent and 25 percent in the upcoming two years, up from an annual average of five percent to six percent currently, according to experts in the industry.
“The insurance sector is still well-performing compared to other countries in the region, due to continuous confidence in the economy, availability of high skilled human resources and increase in awareness about insurance,” said Assaad Mirza, former Chairman of Association des Compagnies d’Assurance au Liban (ACAL). “Premiums will regain momentum and grow at double digits from their current annual level by 2017, especially if a peace deal is more likely to happen to end the turmoil in the region,” he said.
Insurance premiums used to grow at an annual average of 18 percent before the regional turmoil. “The reconstruction phase in some countries in the region will provide insurance companies with room to grow their premiums in the fields of contracting, life, and housing among others,” said Mirza who is also the Chairman of Capital Insurance & Reinsurance. “Insurance companies will be also active in the local market,” he said.
Insurance penetration is estimated at between five percent and six percent currently, according to Mirza. “After launching compulsory insurance for cars and industries in recent years, potential growth could be achieved with the introduction of compulsory insurance in new areas like tourism including hotels and restaurants,” he said. Mirza said that “maritime insurance is another area where growth could be achieved, especially once trading activity regains momentum.”
Reported by Leila Rahbani
Date Posted: Jul 29, 2015