increase by three percent
Sales growth derived
from price increase of hospitalization
The total value of written premiums went up three percent to reach $1.5 billion in 2015.
Around 70 percent of these premiums were recorded in non-life policies. Indemnities have risen nine percent to $823 million according to data released by the Association of Insurance Companies (ACAL).
In terms of premiums, life insurance saw a seven percent growth. It was the main growth driver. Morbidity and mortality are linked together. Many medical cases, cancer for example, can lead to death.
Said Assaad Mirza, former chairman of ACAL, said: “We recorded a 15 percent increase in cancer cases last year.” Mirza also said that hospitals have increased their tariff. As a consequence, insurance companies raised premium prices by ten percent.
Motor insurance premiums grew five percent. Mirza said: “The number of car sales has slightly increased, but the cars that are being purchased have a lower value than those that were purchased in the past.” This has lowered the premium per insured car.
The value of claims in life insurance grew 34 percent. The growth in life premiums also led to a growth in the number of claims in this field.
“It only takes two to three expensive life insurance holders to pass away to raise the value of claims this much,” said Georges Ayoub, Vice President of Fidelity Insurance and Reinsurance. The biggest share of claims was in the medical sector, 38 percent, followed by vehicles, 22 percent.
Because of low growth rates, insurance companies have started to cut down on expenditure. According to Mirza, insurance companies have kept recruitment to the minimum.
Growth in values in premiums and claims according to insurance business line.
Reported by Yassmine Alieh
Date Posted: Oct 20, 2016