Lebanon’s economy and trade minister, Basil Fuleihan, has warned that the ministry will revoke the licenses of any insurance company that fails to raise its capital by the middle of this year in line with the new insurance law, reported the Daily Star newspaper.
The law, approved by parliament last year, stipulates that all insurance firms must raise their capital to at least 1.5 million dollars by June 28th, and set aside a further 1.5 million dollars to guarantee insurance that they provide, according to the paper.
Speaking at the opening of a two-day Arab Insurance Forum, Fuleihan made it clear that the deadline for the insurance companies will not be extended.
"I seize this occasion to tell all the Lebanese insurance firms at this forum that they should get their act together and abide fully by the requirements," Fuleihan said.
The minister said that he was confident all the insurance firms will comply with the requirements.
But experts have said previously that some 30 of the 64 insurance firms currently operating will not be able to meet the higher capital requirement, forcing them to either shut down or seek a merger with bigger companies.
