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Lebanon Insurance Market Intelligence

  • ID: 1213335
  • Report
  • January 2010
  • Region: Lebanon
  • 20 pages
  • Koncept Analytics
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Lebanon's insurance sector is more significant economically, more advanced, and more innovative than those of its Arab neighbors. Also, the insurance sector is open and liberal supported by the free market economy. Private players hold the lead with highest shares as there is less government intervention. The life insurance segment is relatively smaller in size as compared with the non-life insurance segment, mainly because of the lack of government intervention and laws. Besides registering the highest insurance penetration rate in the MENA region, the Lebanese insurance industry also recorded a healthy premium growth. Lebanon is one of the only seven countries in the world which scored profits in 2008 due to its free economy structure and control of private companies. The continuous growth in its national economy helped the insurance sector to grow with a rising growth rate.

The demand for motor insurance and medical insurance are the major growth drivers for the non-life insurance segment. The large deficit of the governmental system in terms of management and coverage favors the development of several types of insurances activities. Health, auto and life insurance dominate the underwriting of insurance categories in the Lebanese market. The mandatory insurance of every motor vehicle has boosted car insurance sales, which has an influence over the total market. The other forms of insurance (fire, marine and various risks) are developing at a slower pace and remain linked to circumstances. Though the insurance density has grown over years, it remains considerably behind other developing nations. In addition, the penetration rates are low but have increased over the time period.

The present report gives an overview of the insurance market of Lebanon along with an analysis of the Lebanese political structure and economic growth. The report provides an insight into the market size and growth in insurance premiums as well as life and non-life premiums. Insurance premiums are discussed in terms of life and non-life segments and the density and penetration levels. The various developments and drivers are also discussed and finally the projections regarding premium growth are given.

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of Lebanon insurance industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry and its sub-segments life and non-life insurance. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

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1. Industry Snapshot

1.1 Industry Structure

1.1.1 Economically Significant, More Advanced and Innovative
1.1.2 Private Players Leading the Industry, Less Government Intervention
1.1.3 Open and Liberal System in Industry

1.2 Market Overview

1.2.1 Market Size & Growth Industry went Through Many Changes Life Reforms and New Products Low Global Premium Share and Ranking

1.2.2 Market Segments General Insurance Largest Segment, High Demand for Motor and Medical Insurance Unprecedented Development in Life-Retirement Health, Auto and Life Insurance Dominate the Underwriting of Insurance Categories Mandatory Motor Vehicle Insurance

1.2.3 Market Density & Penetration Steady Growth in Insurance Density Low Per Capita Insurance Expenditure Low Compared to Developing Regions Increasing Penetration Rates, High Levels in Non-Life Segment Top Arab Country in Terms of Insurance Penetration Non-Life Growth Supported Penetration Growth

1.2.4 Market Share Highly Concentrated Insurance Industry Life More Concentrated than Non-Life Segment

2. Industry Analysis

2.1 Industry Developments

Trend of Mergers & Acquisitions
Emergence of Bancassurance
Concept of Mandatory Insurance
ACAL Starts ISO Certification Process
Regulatory Amendments
Lebanon Ranks Third in Export Credit Insurance

2.2 Market Drivers

Rising Healthcare Need and Demand for Medical Insurance
Influence of Motor Insurance over the Insurance Sector
Economic Growth
Population Driving Insurance Demand

3. Country Analysis: Risk Assessment

3.1 Political Environment
3.2 Macro-Economic Indicators: Current and Projections

4. Industry Outlook: Forecast and Projections

4.1 Compulsory Insurance Laws, Significant Contribution to Growth
4.2 Numbers of Motor Vehicles and Pricing to Drive Growth in Non-Life Segment

List of Tables

Key Macroeconomic Indicators: (2007 - 2010F)

List of Charts

Annual Premium - Lebanon Insurance Industry: (1998-2008)
Insurance Premium Share (%) by Segment (2008)
Insurance Premium by Segment (2001-2008)
Total Insurance Premium Share (%) by Segment (2008)
Lebanon Insurance Density: (2001 - 2008)
Lebanon Insurance Penetration: (2001 - 2008)
Top Five Non-Life Insurers Market Share (Percentage) (2008)
Top Five Life Insurers Market Share (Percentage) (2008)
Healthcare Expenditures (2000-2008)
Motor Insurance Premium (2001-2008)
Lebanon GDP (At Current Market Prices) (2004-2008)
Lebanon Population (2004-2008)
Forecast: Lebanon Insurance Industry: (2008A - 2012F)
Forecast: Lebanon Life & Non-Life Insurance Industry: (2008A - 2012F)

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown