Welcome to theInsurance ControlCommission

The Insurance Control Commission has published the list of insurance companies providing coverage for the treatment of the new corona-virus COVID-19 for all or part of their insured members.

The ICC Care team is available to answer your inquiries and intervene as needed at:

Hotline: 01-999069

Whatsapp: 81-999069

Email: icc-care@insurancecommission.gov.lb

The Insurance Control Commission has published the insurance sector annual report for the financial year 2018. The report presents a large number of financial and technical statistics, indicators, and analytics, which the ICC makes available to a large number of stakeholders, including experts, financial analysts, shareholders, and policyholders.

The Insurance Control Commission organized the first internal workshop on IFRS 17, to which local and international experts were conveyed. In the introductory presentation, the Acting Head of the ICC, Mrs. Nadine El Habbal, confirmed that the Commission intends to stage a frontline involvement in the implementation process of the new reporting standard. Mrs. El Habbal confirmed throughout the day that the ICC will propose a largely prescriptive approach with minimum requirements, and issue clear implementation guidelines to help clarify the way forward.

Respective experts from EY, Milliman, and PwC, were invited to contribute to the reflection. The presentations of EY and Milliman provided thorough details on the founding principles of IFRS 17, and the building blocks of their approach. They discussed relevant practical experience from the current implementation streamlines in the Gulf from the respective perspectives of the supervisors and insurance firms. Milliman and PwC experts drew parallels with the approach adopted for the implementation of Solvency II in Europe, and discussed the complementarities and differences between the two standards. PwC focused on the importance of incorporating a risk-based-capital model to complement the implementation of IFRS 17, and expressed the urgency felt to assess the financial condition of insurance companies through modern regulatory approaches.

The ICC plans to continue the reflection in the coming weeks, and to initiate large consultation with the market stakeholders.

The Insurance Control Commission has published its quarterly report on the insurance market for the second quarter of 2019. The report includes a number of dashboards extracted from the analysis of the quarterly regulatory forms filed by the insurance companies. These forms were analyzed for consistency purposes; however, they were not validated against audited financial statements. Nevertheless, the quarterly reports provide initial directional perspectives on the developments in the insurance market in 2019.

The Insurance Control Commission suspended the insurance license granted to Liberty Insurance SAL. The decision was driven by sustained material breaches of the insurance regulations in Lebanon. Until further notice, the Company is not allowed to issue or renew any policy contract. Nevertheless, it will continue to service the in-force portfolio and settle its obligations to policyholders.

The BOD of the ACAL met with the Insurance Control Commission in the first visit to the regulator following its election. The Acting Head of the ICC, Mrs. Nadine El Habbal, renewed its wishes for a successful mandate, and stated that the consultation process with the sector, represented by the BOD of the ACAL, will continue to bear positive fruits for all stakeholders, namely the insured persons. The discussions covered a broad range of topics and challenges of relevance to the present economic context as presented by ACAL’s president, Mr. Elie Torbey, turning the meeting into a thorough round-table discussion.

Governance and segregation of duties were the main considerations debated, in view of their relevance at all levels. Not only good governance can enhance the technical and financial performance of the sector and foster sustainable growth, it also has a major impact on the image of the sector and its stated ambitions to become an insurance platform that can service the Levant region in the years to come. Good practices would also lead to an improved rating of the financial services sector in Lebanon, boosting the country’s perception among foreign investors.

The Commission has implemented its own internal governance, and is exercising its supervisory efforts in line with a risk-based-supervision philosophy. The control focuses on benefit levels, prudential reporting and market conduct, while the insurance companies have a reasonable level of flexibility in designing and pricing insurance products and services. This approach is fully aligned with the free-market economy; it encourages creativity in developing new products, services, and distribution channels.

The ICC announced that Hannover Re committed to cease all business with entities not licensed to sell insurance products to the public as from the coming renewal dates of the arrangements in-force. Hannover Re confirmed its commitment to Lebanon, and will continue to increase its support to the licensed insurance firms. This development represents a major achievement in mitigating the risk of unlawful competition, which has disrupted the market in the previous years.

23 MAY 2019

Approved transactions and appointments

The Insurance Control Commission (ICC) has approved the following transactions:

# Company Name New Majority Shareholders

1 AIG Lebanon S.A.L. AIG MEA Holding Company Limited

2 Assurex S.A.L. Saradar Insurance Holding S.A.L.

In parallel, the ICC has approved the following appointments:

# Company Name Appointed Person Position

1 CIGNA Insurance Middle East S.A.L. Raed Labaki General Manager

2 Mediterranean & Gulf Insurance & Mohammad Bachir El Khatib General Manager

Reinsurance Co. S.A.L. (MEDGULF)

3 Assurex S.A.L. Mario Saradar General Manager

These approvals were subject to standard regulatory and governance conditions, as implied by the prevailing regulations and by the Insurance Core Principles (ICPs) emanating from the International Association of Insurance Supervisors (IAIS).

The ICC stresses that any information that has neither been formally released from its end nor published on its website may not be accurate and should not be relied upon.