Lebanon's broker reform: the 'end of summer' target has passed – where is the decree?
In June, the Minister of Economy set a clear target for the insurance brokers' decree: the end of summer. It is now mid-October. Brokers, insurers and policyholders are still waiting for the new rules.
Lebanon's Minister of Economy and Trade, Dr. Amer Bisat, presented a broad insurance reform strategy in mid-June 2026 at the Higher Institute of Insurance Science (ISSA) of Université Saint-Joseph, during the institute's 50th anniversary event. For insurance brokers, the plan was specific: raise capital, adopt a code of conduct and regulate commission practices. According to the ministry's presentation, a draft decree was being discussed with the Lebanese Insurance Brokers Syndicate (LIBS), and the process "should be completed by end of Summer".
Earlier, in January 2026, the ministry raised the guarantee required from insurance brokers to USD 20,000, its pre-crisis level, rising gradually to USD 50,000 over three years. New brokers must comply immediately, while existing brokers were given a six-month grace period. The minister stressed that the increase was "not an arbitral or unilateral decision" and was taken after consultation with the sector.
We thank the Ministry of Economy and Trade for publishing a reform plan with clear objectives and a timetable, and for consulting the brokers' syndicate. A public timetable is what allows the market to follow progress.
THE QUESTION NOW: WHERE DOES THE BROKER DECREE STAND?
Summer has ended. As of 13 October, we could find no public announcement that the decree has been issued. This does not mean the work has stopped; it may still be under consultation. But brokers need to know which capital requirement they must meet and by when, how commissions will be regulated, and what the code of conduct will require of them.
Parliament is also involved. On 5 August, MP Dr. Farid Boustany, who chairs the parliamentary Committee on National Economy, Industry, Trade and Planning, announced, together with four other MPs, a law proposal to regulate insurance brokerage and representation. After the committee met on 7 October, he said, according to Al-Hadeel, that there was agreement on several key points and that the committee is working with the Ministry of Economy towards a legal formula that is acceptable to all and enforceable.
The other items in the plan follow different timelines. For insurers, an advisory firm has been engaged, and the ministry expects to finish that work, which includes restoring capital adequacy, by mid-2027. Legislative work is underway on unresolved Port of Beirut explosion claims and on the losses left by the collapse of the pre-crisis life insurance market. Annual life premiums, which were around USD 550 to 600 million before the crisis, are now below 5% of that level. The activation of an Insurance Arbitration Council is also underway, while a new Insurance Code to replace the 1968 Code des Assurances is planned as a longer-term effort ('a law that holds for a generation', in the ministry's words).
OUR VIEW
In our view, broker regulation is one of the quickest wins in the whole plan. The ministry's own presentation describes it as a decree rather than a law, so it need not wait for the longer parliamentary process. It also directly affects the people who sit between the insurer and the policyholder. Clear capital rules and transparent commissions protect the policyholder first. Now that a law proposal is also on the table, a short public update on how the two tracks fit together would strengthen confidence in the entire reform programme.
OUR QUESTIONS
1. At what stage is the draft decree on insurance brokers' capital, code of conduct and commissions, and when is it expected to be issued?
2. What capital requirement will apply to existing brokers, and how long will they have to comply?
3. Will commission levels or commission disclosure to policyholders be regulated under the new rules?
4. When will the Insurance Arbitration Council start accepting cases?
5. How will the draft decree relate to the law proposal on insurance brokerage now before Parliament's Economy Committee?
RIGHT OF REPLY
We are ready to publish in full any response from the Ministry of Economy and Trade, the Insurance Control Commission, Parliament's Economy Committee and the Lebanese Insurance Brokers Syndicate.
#Lebanon #InsuranceBrokers #InsuranceReform #MinistryOfEconomy #InsuranceControlCommission #SigortanınSesi
Follow the sector at its source
Newsletter: regulatory changes, data and analysis — each one with its source shown.
