Lebanese Economy Minister Unveils National Strategy to Reform Insurance Sector

A meeting was held at Saint Joseph University in Beirut featuring Minister of Economy and Trade Amir Al-Bassat, discussing the "Strategic Vision for the Insurance Sector in Lebanon." The event was convened by the university president, Professor François Boudak, and the acting director of the Higher Institute of Insurance Sciences, Professor Irma Majdalani, in partnership with the Association of Insurance Companies in Lebanon. Participants included MP Farid Al-Bustani, insurance company owners, guild leaders, and heads of regulatory bodies.

Minister Al-Bassat announced an ambitious national strategy titled "Building Resilience: Reforming Lebanon’s Insurance Sector," which aims to restructure the sector to serve as a fundamental pillar in the country’s economic recovery. He emphasized that the insurance sector currently represents the last functioning financial channel in the Lebanese economy and is essential for restoring trust in the financial system. Al-Bassat highlighted that the insurance sector has demonstrated exceptional resilience at a time when banks and public institutions have failed, absorbing institutional shocks and acting as a vital partner in achieving national stability and economic recovery. He further explained that modernizing this sector is a necessary step toward reintegration into the global economy and normalizing economic conditions.

The minister revealed an agenda comprising three main reform pillars:

- Establishing a solid market structure by developing a regulated sector subject to accountability and possessing strong financial solvency.

- Enhancing the supervisory role by equipping the Insurance Control Commission with all necessary legal and procedural tools.

- Ensuring affordable healthcare by controlling the inflation of health costs and guaranteeing transparency.

Reviewing progress made, Al-Bassat announced the reactivation of the National Insurance Council after a nine-year suspension and the restoration of authentic leadership of the Insurance Control Commission through the appointment of a permanent chairman, Nadim Haddad. These steps form the foundation of strategic governance. He also noted ongoing efforts to activate the Insurance Arbitration Council to provide a swift dispute resolution mechanism and protect policyholders without resorting to costly courts.

On the legislative front, the ministry is working to replace the 1968 Insurance Bodies Regulation Law with a new 21st-century insurance law. This new legislation will incorporate risk-based solvency standards, clear frameworks for liquidating distressed companies, and explicit legal provisions to safeguard consumer rights.

Addressing unresolved issues and the inflation of health costs, Al-Bassat stressed the priority of handling pending claims related to the Beirut port explosion and life insurance files affected by the crisis. He indicated that legislative interventions are currently being prepared.

He also disclosed plans to collaborate with the Ministry of Public Health to enforce price transparency and clinical governance to confront structural inflation in hospitalization costs. The minister pledged that the ministry will be publicly and systematically accountable for every commitment made. He emphasized that all decrees and legislation will undergo transparent consultations with all stakeholders to ensure the development of an insurance sector befitting every Lebanese citizen.

University President François Boudak welcomed attendees on the 50th anniversary of the Higher Institute of Insurance Sciences. He praised the ongoing partnership between the institute and the insurance sector in developing academic programs, practical training, and integrating graduates into the labor market. Boudak affirmed the university’s aim to strengthen its role as a partner to active societal forces and contribute to economic and social development through preparing qualified professionals and producing knowledge and scientific research.

Boudak underscored the importance of the insurance sector in confronting the economic and social risks and challenges Lebanon faces. He pointed to the necessity of cooperation among public authorities, regulatory bodies, professionals, and universities to keep pace with the sector’s transformations.

He stated that through the Higher Institute of Insurance Sciences, Saint Joseph University seeks to accompany the insurance sector’s development by applying its academic expertise to serve professionals, regulatory bodies, and decision-makers. This approach reaffirms the university’s role as a center for thought, innovation, and monitoring major economic and social changes.

Boudak added that these ambitions hold particular significance given the insurance sector’s central role in Lebanon’s economic and social life. Facing risks arising from the country’s unstable political, economic, and security conditions, insurance acts as a fundamental safety valve for both citizens and institutions. This role becomes even more crucial amid growing social challenges that make accessing healthcare more difficult for some population segments. Despite public authorities’ commitment, their available resources do not always suffice to guarantee the protection citizens legitimately seek. Under these circumstances, the insurance sector confronts a complex challenge: balancing its public benefit mission with economic sustainability requirements to maintain its operational capacity. These challenges call for collective reflection involving public authorities, regulatory bodies, professionals, and universities.

Boudak considered Minister Al-Bassat’s participation particularly important as it presented his strategic vision to relevant parties, enhancing dialogue among policymakers, experts, academics, and practitioners, and contributing to the insurance sector’s development in the upcoming phase.