Mirza: Lebanon's Insurance Sector Lost Around $1 Billion to the Banking Crisis
According to ACAL President Assaad Mirza, the sector's business volume has fallen from about $1.6 billion to about $1.1 billion, while life insurance, which once generated close to $400 million a year for insurers, no longer exists.
Assaad Mirza, President of the Association of Insurance Companies in Lebanon (ACAL), warned that the country's insurance sector is under heavy pressure from the accumulation of economic, banking and health crises, as well as rising costs of medical services and spare parts, which have directly affected the cost of insurance and the volume of business.
Speaking on the "3:15" programme on RED TV, Mirza said that the lifting of subsidies on medicines has increased the burden on insurance companies, at a time when cancer rates are rising. He noted that the cost of treating a single patient can reach around $200,000 a year.
Mirza stated that the sector lost around $1 billion as a result of the banking crisis in Lebanon.
He added that the cost of health insurance has risen due to the sharp increase in hospitalisation and medical service costs, and that insurers have had to raise motor insurance prices because of the continuous rise in the cost of spare parts, painting and repair work.
Read also: Lebanon's Insurance Reform: The Summer Deadline Has Passed. Where Are the Rules?
According to Mirza, the insurance sector's business volume stood at around $1.6 billion before declining to around $1.1 billion today. He said that life insurance used to provide insurance companies with revenues of close to $400 million a year, but that it no longer exists today.
#Lebanon #Insurance #ACAL #LifeInsurance #HealthInsurance #SigortanınSesi
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