Boston, MA -- (ReleaseWire) -- 03/11/2014 --Lebanon’s insurance industry has registered considerable growth since 2007, due to a comparatively stable political climate. In terms of gross written premium, the industry posted a review-period CAGR of 10.5 percent. The country has been rated 48th globally and first in the Middle East and North African (MENA) region, in terms of insurance penetration by Swiss Re in 2013.
The life segment was led by the individual life category, followed by the endowment category as the consumers’ need for savings products, retirement and educational products resulted in the dominance of the individual life category.
The non-life segment was led by the motor insurance category, followed by property insurance, marine, aviation and transit insurance, and general liability insurance. The twin impact of the demand for housing and the consequent price rise resulted in an increase in the demand for property insurance. The sale of automobiles supported the growth of the motor insurance category as third-party liability insurance was made a mandatory insurance class. The growth rates for the motor insurance category were subdued for 2011 and 2012, due to the Lebanese increasingly preferring smaller, fuel-efficient cars. Smaller cars attract lower insurance premiums and weaken insurers’ margins.
Due to the minimum paid-up capital being only US $1.5 million, the Lebanese insurance industry comprises many insurers. However, as the conflict in Syria affects Lebanon’s economy, these insurers are under increasing pressure to operate profitably. There is growing demand from the Lebanese Insurance Association to increase the value of the minimum paid-up capital. The non-life segment has also been impacted by the decline in exports to Europe due to the eurozone debt crisis. More facts can be found in the full report, "The Insurance Industry in Lebanon, Key Trends and Opportunities to 2017."
The report also includes the following information:
- A snapshot of the market dynamics within the Lebanese insurance industry, including market trends and market sizes.
- An overview of the Lebanese insurance industry, including scale and penetration, growth, efficiency and risk, as well as distribution channels. The report will also look at industry attractiveness, the size for the forecast period 2008-17 and the trends, drivers and outlook.
- A legislative overview, looking at governance, risk and compliance for varying insurance types and chapters on taxation and the legal system.
- A look into the competitive landscape of the Lebanese insurance industry, looking at case studies of leading companies in the Lebanese insurance segment, as well as the economic indicators assessing business environment and country risk pertaining to Lebanon.
You can find more information about this report, including key insights, market drivers, a full abstract, companies included, and a detailed table of contents at www.FastMR.com.
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Lebanon's Insurance Industry Has Grown Considerably Since 2007, but Pressure Is on to Increase Minimum Paid-Up Capital Value
Due to the Lebanese government’s liberal regulations, foreign insurers have a considerable presence in the country. Lebanon also has one of the most developed insurance industries in the Middle East region.