Lebanon – Insurance pricing in dollars after May 1st
Thursday, 04 30 2020, Category: Insurance and Reinsurance, Country: Lebanon
The dollar crisis has weighed heavily on insurance policy holders who have to pay for their “priced” policy in US dollars, either in the same currency as the policy or its equivalent in Lebanese pounds, depending on the market exchange rate. Starting tomorrow, Labor Day, there is no other option for insurers, in line with the proposal of the Lebanese Insurance Association (ACAL): either pay in dollars or its equivalent or withdraw from the policies
As of May 1st, insurance companies will start collecting the value of the policies in foreign currency from the insured in the policy currency or its equivalent in Lebanese pounds according to the exchange rate in the parallel market. Today, the effects of the 1507 dollar are ending, to begin tomorrow a new stage of “pricing” according to the market price, which is not known. If the information available to date indicates that the exchange rate that companies will adopt, at the present time, is 2,600 liras, without being a final price.