Independent brokers lead in insurance sector in 2011

43 percent of premiums, 46 percent of brokerage income came from independent brokers

Independent insurance brokers contributed 43 percent of the sector’s total turnover in 2011, according to a study published by the Lebanese Insurance Brokers Syndicate (LIBS). Around 33 percent was sourced directly through insurance firms or their exclusive agents, while the remaining 24 percent was sourced through banks. The insurance market made $1.2 billion in total premiums last year.

According to the study, out of the 1,400 licensed insurance brokers operating in the local market, only 380 are independent brokers. The rest are exclusive agents affiliated with insurance firms.
Policies underwritten last year, some 3.5 million in total, were issued almost equally by independent brokers (at 36 percent), insurance firms (at 32 percent), and banks (at 32 percent).

Income generated from insurance brokerage activity (commissions earned) for the whole sector totaled $200 million last year. In this segment too independent brokers accounted for the lion's share of 46 percent, while insurance companies' agents accounted for 31 percent, and banks just 23 percent.

The insurance brokerage sector employs 3,700 individuals, including shareholders at brokerage firms, the study showed.

Reported by Hanadi Chami