Lebanon – Mutual Insurance Funds and illegal practices
Wednesday, 06 01 2016, Category: Insurance and Reinsurance, Country: Lebanon
The Insurance Control Commission clarified to the public and all concerned parties “some issues related to mutual insurance funds and the illegal practices which are difficult to control”.
The regulations in force including the decree No 9812/1968 assigned to the Insurance Control Commission the regulation of insurance carriers in order to protect the insurance sector as well as the public. However, at the same time the legislative decree No 235/1977 and the decree No 515/1977 were introduced to regulate the mutual insurance funds shifted their regulation to the Ministry of Agriculture instead of the Insurance Control Commission. Therefore, mutual insurance funds are outside the scope of the Commission’s regulation on insurance carriers.
This issue leaves room for illegal practices which are difficult to control by regulatory authorities and external auditors.
The Insurance Control Commission was repeatedly concerned about the possibility of manipulation in light of the dual legal status of insurance carriers, so it called for rapid cooperation between the Ministry of Economy and Commerce and the Ministry of Agriculture.
Source: Assafir Newspaper