Lebanon’s insurance industry survives war intact

Lebanon’s insurance companies passed through the 2006 war between Israel and Hizbullah without having to pay crippling amounts for war-related claims, because this type of coverage is not a usual purchase option. (In any country, a house caving in beneath the impact of a force majeure is not calculable, and ineligible for cover under a standard home owner’s policy.) In fact, the latest global insurance industry research by reinsurance giant Swiss Re positions Lebanon at a total premium volume of $664 million, up from $580 million in 2004, and an insurance density—the amount per capita invested in premiums—of $185.6, distributed at a ratio of 70:30 between general insurance and life insurance. This compares favorably with insurance density of $54.2 in Jordan, $57.1 in Saudi Arabia and $113.7 in Oman. Lebanon is on equal footing with Kuwait ($185.5) in terms of overall insurance density, however the distribution between general and life