OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, Alex Rafferty, senior financial analyst, A.M. Best, reviews the issues shaping the insurance market in Lebanon, including how some insurers operate outside control of the insurance regulator. Click on http://www.ambest.com/v.asp?v=lebanon518 to view the entire program.
Rafferty spoke about some of the challenges insurers are facing in Lebanon.
“Some of the key challenges are the fragmented nature of the Lebanon market, which contributes to a highly competitive marketplace as a wide number of insurance companies vie for market share and generate price competition,” said Rafferty. “Another competitive factor is the role of intermediaries and indirect distribution channels. This detracts from an insurer's ability to generate significant brand loyalty within consumers and amplifies price sensitivity to solutions offered by intermediaries.”
Going forward, Rafferty said he believes the market in Lebanon will continue to be fragmented.
“There are a large number of insurers competing for business. Proposed regulatory reforms include increased solvency regulation and more stringent solvency requirements, which if successfully enforced, could lead to market consolidation as smaller companies may seek to combine or merge to meet the scale required to comply with more stringent capital requirements.”
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