Lebanon Insurance Market Intelligence: 2011 Edition
Lebanon's insurance sector is economically more advanced and innovative as compared to its Arab neighbors. Lebanon ranked fifth in the Middle East and North Africa (MENA) region in terms of total insurance premiums in 2009. Growth in the insurance sector in Lebanon in 2009 was spurred by an expansion of the non-life insurance segment which recorded a significant growth and was much higher than the MENA average growth.
Growth in the non-life insurance premiums is attributed to increased comprehensive motor insurance for new cars sold and replaced health insurance. However, life insurance premiums declined due to global financial crisis that had a negative impact on personal savings. Insurance penetration in Lebanon is far below the world average and hence there is a strong potential for further expansion.
The top five life insurers in Lebanon controlled more than half of the market share in 2009 with American Life Insurance Company (ALICO) being the market leader. Medgulf, Bankers, AROPE, AXA and Allianz SNA are major non-life insurers in Lebanon. The expectation that economic growth will resume in 2010 coupled with the growing demand for motor insurance, emergence of bancassurance and rising population will drive the insurance sector premiums in Lebanon in the near future.
Growth in the non-life insurance premiums is attributed to increased comprehensive motor insurance for new cars sold and replaced health insurance. However, life insurance premiums declined due to global financial crisis that had a negative impact on personal savings. Insurance penetration in Lebanon is far below the world average and hence there is a strong potential for further expansion.
The top five life insurers in Lebanon controlled more than half of the market share in 2009 with American Life Insurance Company (ALICO) being the market leader. Medgulf, Bankers, AROPE, AXA and Allianz SNA are major non-life insurers in Lebanon. The expectation that economic growth will resume in 2010 coupled with the growing demand for motor insurance, emergence of bancassurance and rising population will drive the insurance sector premiums in Lebanon in the near future.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Open and liberal nature of insurance industry compared to other Arab neighbors
1.1.2 Insurance industry characterized by low entry barriers
1.1.3 Life insurance is relatively smaller compared to non-life insurance segment
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Rise in total premiums in 2009 and ranked 5th in MENA region
1.2.1.2 Non-life insurance recorded an excellent growth in 2009
1.2.2 Market Segments
1.2.2.1 Non-life insurance segment accounted for a larger share
1.2.2.2 Global financial crisis led to a decline in life insurance premiums
1.2.2.3 Growing influence of the banking sector on the insurance sector
1.2.2.4 Comprehensive motor insurance was the main source foe non-life premiums
1.2.3 Market Density & Penetration
1.2.3.1 Ranked 4th in terms of insurance density in MENA region in the year 2009
1.2.3.2 Insurance penetration in life insurance is low reflecting potential for expansion
1.2.4 Market Share
1.2.4.1 Most of insurers posted double digit growth in 2009
1.2.4.2 ALICO remained as market leader in life insurance; MEDGULF in non-life
2. INDUSTRY ANALYSIS
2.1 Industry Developments
New Health Insurance Reforms
AROPE Insurance established two companies in Egypt
MetLife entered into an agreement with AIG to acquire ALICO
Accreditation Canada International Appointed to improve healthcare
2.2 Market Drivers
Economic Growth
Demand for Motor Insurance
Rise in Foreign Direct Investment
Emergence of Bancassurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Compulsory insurance-motor insurance, insurance for expatriates, workmen insurance will be driving non-life insurance
4.2 Large uninsured population provides potential for growth
1.1 Industry Structure
1.1.1 Open and liberal nature of insurance industry compared to other Arab neighbors
1.1.2 Insurance industry characterized by low entry barriers
1.1.3 Life insurance is relatively smaller compared to non-life insurance segment
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Rise in total premiums in 2009 and ranked 5th in MENA region
1.2.1.2 Non-life insurance recorded an excellent growth in 2009
1.2.2 Market Segments
1.2.2.1 Non-life insurance segment accounted for a larger share
1.2.2.2 Global financial crisis led to a decline in life insurance premiums
1.2.2.3 Growing influence of the banking sector on the insurance sector
1.2.2.4 Comprehensive motor insurance was the main source foe non-life premiums
1.2.3 Market Density & Penetration
1.2.3.1 Ranked 4th in terms of insurance density in MENA region in the year 2009
1.2.3.2 Insurance penetration in life insurance is low reflecting potential for expansion
1.2.4 Market Share
1.2.4.1 Most of insurers posted double digit growth in 2009
1.2.4.2 ALICO remained as market leader in life insurance; MEDGULF in non-life
2. INDUSTRY ANALYSIS
2.1 Industry Developments
New Health Insurance Reforms
AROPE Insurance established two companies in Egypt
MetLife entered into an agreement with AIG to acquire ALICO
Accreditation Canada International Appointed to improve healthcare
2.2 Market Drivers
Economic Growth
Demand for Motor Insurance
Rise in Foreign Direct Investment
Emergence of Bancassurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Compulsory insurance-motor insurance, insurance for expatriates, workmen insurance will be driving non-life insurance
4.2 Large uninsured population provides potential for growth
LIST OF CHARTS:
Annual Premium – Lebanese Insurance Industry: 2002-2009
Lebanon Insurance Premium Share (%) by Segment – 2009
Lebanon Insurance premium by segment – 2002-2009
Lebanon Insurance Density (US$): 2002 – 2009
Lebanon Insurance Penetration 2002 – 2009
Lebanon: Major Life Insurer’s Market Share: (2009)
Lebanon: Major Non-Life Insurer’s Market Share: (2009)
Lebanon: GDP at Current Prices 2002 – 2009
Number of New Cars Registered in Lebanon 2002 – 2009
Annual Capital Inflows in Lebanon 2002-2009
Rising FDI in Lebanon 2002-2009
Lebanon Population: 2002-2009
Forecast: Lebanon Insurance Industry: 2009A - 2013F
Forecast: Lebanon Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – Lebanese Insurance Industry: 2002-2009
Lebanon Insurance Premium Share (%) by Segment – 2009
Lebanon Insurance premium by segment – 2002-2009
Lebanon Insurance Density (US$): 2002 – 2009
Lebanon Insurance Penetration 2002 – 2009
Lebanon: Major Life Insurer’s Market Share: (2009)
Lebanon: Major Non-Life Insurer’s Market Share: (2009)
Lebanon: GDP at Current Prices 2002 – 2009
Number of New Cars Registered in Lebanon 2002 – 2009
Annual Capital Inflows in Lebanon 2002-2009
Rising FDI in Lebanon 2002-2009
Lebanon Population: 2002-2009
Forecast: Lebanon Insurance Industry: 2009A - 2013F
Forecast: Lebanon Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Forecast: Lebanon Life & Non-Life Insurance Industry: 2009A - 2013F
Forecast: Lebanon Life & Non-Life Insurance Industry: 2009A - 2013F
