Lebanon - Insurers to hike LBP rates to current market levels
Saturday, 04 25 2020, Category: Insurance and Reinsurance, Country: Lebanon
Lebanon’s insurance companies will change most of their insurance policies to the current pound price rates in the parallel market as the sector reels under the severe economic conditions, the president of the insurance association Elie Torbey said Friday.
“We have no other choice but to charge our clients in dollars or in Lebanese pound at the current market rates. Some of the companies will apply the new rates in couple of days while others will implement them in the first of May 2020,” Torbey the president, of ACAL (Association des Compagnies d'Assurances au Liban) told The Daily Star.
The country’s insurance sector, with 51 companies boasting total premiums of $1.7 billion at the end of 2019, was among those that was gravely affected by anti-government protests and the 2-month-old lockdown over the coronavirus pandemic that has literally crippled the country.
Torbey said insurance companies could no longer afford to keep the dollar rate at LL1,500.
“We won’t be able to survive if we kept this unrealistic rate. The customer has either to pay for his insurance policy in dollars or in pounds but at the current market rate. We have no choice but to proceed with the new rates,” he added.
Source: Daily Star