10 AUG 2018
ICC Annual Report 2017

The Insurance Control Commission (ICC) published the insurance sector annual report for the financial year 2017. The report was issued significantly ahead of the usual time upon requests formulated by a number of stakeholders to allow earlier analysis of trends and performance. The earlier issuance implied that a number of companies that did not file their prudential returns on time were not considered. 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.

HE Mr. Raed Khoury, Minister of Economy and Trade, introduced the report by focusing on the positive outlook that awaits the economy as a result of CEDRE and the expected implementation of the economic vision developed under his directives. HE saw that the insurance sector would benefit significantly from the expected economic developments provided good governance and adequate investments are deployed. In this context, the ICC is providing the right support through the focus on risk-based supervision and sound solvency. On a separate note, Mr. Khoury evoked the introduction of the guaranteed renewability of medical insurance products, which was implemented successfully, implying a major enhancement in the insurance market and the economy as a whole. He deplored the delay in consolidation, which leads to sub-optimal utilization of capital and human resources.

Mrs. Nadine El Habbal, the Acting Head of the Insurance Control Commission, stated that the key opportunity for the insurance industry in the coming years resides in the expected growth of a pacified Levant region. Lebanon can become the insurance platform of this region provided the sector is prepared in an adequate manner. In this perspective, the ICC is modernizing its processes and supervisory approach, while strengthening bilateral cooperation with regional and international supervisors. The ICC also completed two major projects with WorldBank experts covering the framework for the motor third party liability insurance and the risk-based capital model.

Mrs. El Habbal commented on the importance of the Ministerial Decision on the guaranteed renewability of medical insurance products, as it moves the economy from a sub-optimal equilibrium point to an enhanced position that benefits all stakeholders. She cited relevant similar systems in place in France since the Loi Evin of 1988 and the German universal medical insurance system. A universal medical insurance is the ultimate objective, and would require an efficient private-public partnership.

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