The Head of the Association des Compagnies d’Assurances au Liban (ACAL), Elie Tarabay, confirmed that insurance companies will not adopt the exchange rate of 3,900 LBP against US dollar before they obtain the Central Bank’s approval.

Tarabay told Al-Markaziah that the association has asked the Central Bank to allow insurance companies to adopt the Banque du Liban (BDL’s) platform exchange rate of 3,900 LBP against dollar. This is because insurance companies are still receiving the insurance policy tariffs according to the official exchange rate of 1,500 LBP, while it is paying for spare parts and medical equipment according to the black market prices which exceeded 12,000 LBP.

He added: “Due to this severe reality, insurance companies will not be able to survive in such a situation. It has become necessary for insurance companies to adopt the exchange rate adopted by banks, and we consider that this is a legitimate right in light of the difficult conditions the country is going through. It is so difficult to continue serving the insured people without adopting the exchange rate determined according to the  BDL platform.”

Tarabay said that hospitals decided to adopt the price of the BDL’s platform for its new tariffs, and they are asking insurance companies to pay hospital bills either in Lebanese pounds according to the price of 3,900 pounds, or paying half the bills In LBP at the price of the platform and the other half in US dollars.

This leads the insurance companies to collect it dues either through a“ dollar check ”or in Lebanese pounds at the exchange rate of 3,900 LBP because most of the hospital costs are paid by the insurance companies. “Insurance companies find there selves forced to follow hospital tariffs. … We have no other solution,” he added.

Based on this, Tarabay reiterated his demand “to officially approve the adoption of the exchange rate on BDL platform in the insurance sector, whether they are paying to the hospitals or receiving their dues from insurers.”