In our time, the term insurance is going beyond the simple definition of protection or guarantee for a particular loss in return for a specific premium. In fact, insurance proved its status as one of the rising industries with substantial economic contribution as global insurance penetration reached 6.28% of the world’s Gross Domestic Product (GDP) in 2013. At the regional level, insurance penetration in the advanced Asian markets was the biggest at 11.55% of their GDP versus the slightest stake of 1.51% of the Middle East and Central Asia’s combined GDP. However, the top 3 countries in terms of insurance penetration were: Taiwan (17.6% of GDP), South Africa (15.4% of GDP) and Hong Kong (13.2% of GDP). As for the lowest insurance penetration rates, Egypt, Nigeria and Kuwait posted the worst economic contributions of insurance to GDP at 0.7%, 0.6% and 0.5%, respectively.
When it comes to the Lebanese insurance sector, the 75-year-old industry managed to strengthen its standing over the time despite the ongoing political and security hurdles. In this context, the insurance penetration rate reached 3.2% of GDP in 2013 compared to 2.6% of GDP in 2003. However, Lebanon ranked 65th globally and 5th in the MENA region in terms of insurance penetration rate compared to respective previous ranks of 48th and 2nd in 2012. This is mainly explained by the relatively higher progress of several countries of which Portugal, Ukraine and Philippines.
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Lebanese Insurance Sector Robust Performance in 2014 in the Face of Economic Slowdownn