An article written by Fadi B. Nader
Published in the International Reinsurance Review 2013/14
The Lebanese local insurance market is characterized by its heavy reliance on foreign reinsurance providers based in Europe and in other major regional and international offshore insurance hubs, such as Dubai, Bahrain and Bermuda. Lebanese insurance regulations do not impose strict licensing requirements on local insurers when ceding their risks to ‘non – admitted’ re-insurers. Similarly, foreign reinsurers can access the Lebanese insurance market, either directly or through locally licensed reinsurance brokers, provided that a number of basic conditions are observed. However, the Lebanese Insurance Control Commission (“ICC”) has the authority to review all reinsurance arrangements entered by local insurers and to assess the risk exposure of their ceded reinsurance business. In the light of such review, the technical reserve adequacy and the solvency ratios of local insurers are thoroughly examined Read more