Mixing oil and insurance

Not even a political shutdown of the oil and gas file can discourage Lebanese insurers from preparing for this industry — they, after all, do know a thing or two about risk. But as local insurers gathered at a June conference to discuss the finer points of oil and gas indemnity, a lack of consensus surfaced as to whether they will have priority to assure the assets of exploration companies when they come to town — a right granted as per Lebanon’s insurance law. The government is due to debate this aspect of the legal framework ironing out the details with Lebanon’s insurance association. While that all plays out, a more interesting aspect to ponder is whether local insurers will have the financial leverage to assure oil and gas projects. Together, Lebanese firms generate annual premiums of $1.5 billion and are liquid enough with equities totaling around $1 billion. One