CONNECTIONS, RESOURCES, AND EXPERTISE
TBY talks to Max R. Zaccar, Chairman of Commercial Insurance & President of the Association of Insurance Companies, on the resilience of the sector, increasing the already-high penetration rates in the country, and remaining one of the strongest insurance companies in the region.

BIOGRAPHY
Max Zaccar received a degree in electronic engineering from Institut Superieur d’Electronique de Paris and has been Chairman and General Manager of Commercial Insurance since 1971. He also managed the Saudi Arabia branch of Commercial Insurance from 1974-1993. He is a member of several associations, including the Institut Technique Franco-Libanais, Oum El Nour, and the National Establishment for the Compulsory Motor Insurance in Lebanon. Zaccar has been a member of the board of ACAL since 1978 and was elected President in 2015.What are the assets that make Lebanese insurance companies strong in the MENA region?
Lebanese companies have a great deal of experience with wars, conflicts, and tough conditions; therefore, we understand other areas going through such difficult situations, be it Iraq, Syria, North Africa, Egypt, and the like. We have the connections, the resources, the expertise, and the kind of experience and appetite for those countries, not to mention the know-how to navigate rough waters where other companies may not see any potential or have appetite for risk.
Lebanon is facing economic adversities, yet the insurance sector remains strong and sound. What are the factors that account for that?
All industries have been hit by the situation, but they are all adapting well to the circumstances. Take the hotel industry, for instance. Hotels had an occupation rate of 54% last year, despite all the problems, and today it ranks fourth in the MENA region. The Lebanese economy remains vibrant in spite of everything; people are out on the streets consuming and spending, and the country still represents a gateway to the region for many companies. For the insurance industry, 2015 represented a growth of 2.5% in non-life insurance and 6% in life insurance, with an average of 3.5%, which we consider low but still positive. We are now leading the industry in new endeavors to overcome its challenges.
Lebanon has the highest life insurance penetration in the region, but it has the potential to be even higher. How can this rate be increased?
We have made some progress in this regard after the implementation of compulsory insurances by governmental decision. Now Lebanon has compulsory insurance for an extended variety of things. This move has also been embraced by banks, which ask people to be covered in terms of fire, life, and car insurance, among others, before granting any loan. The most important part is that people are realizing the benefits of insurance coverage and they are moving in the right direction. Something that we can also develop in the near future is life insurance and pensions, since the awareness of people has increased and premium prices are also going down. Now, it will fall on the new generation to evaluate and promote the value of having life and pension insurance coverage.
What is the history of Commercial over the last 50 years, and how has it evolved in Lebanon?
Commercial is a third-generation business that my father started in 1961 after he spent some time working in the insurance sector in Egypt. When he came back, he had good connections here in Lebanon and also with the insurance market in London, so he started his first contracts in marine insurance covering fruit and cigar exports. As he expanded his vision in the sector, he hired a group of professional brokers and set up one of the first insurance companies to operate in Lebanon. We faced difficult times during the Civil War, which ultimately led to the near end of the company in 1978 after our office was destroyed. Nevertheless, being good Lebanese, we proved resilient, and here we are 40 years later as one of the most competitive insurance companies in the country.
How has Commercial Insurance remained strong throughout the tumultuous times Lebanon has faced?
We have been through many things for over 55 years; however, we have always remained loyal to our clients, and they have been loyal to us in return. This client-company relationship has given us a great reputation that neither time nor conflict can diminish. The Lebanese people know that we stand by them. We also focus on niche products. Health insurance and motor insurance make up about 60% of our portfolio. We are also expanding again; we are moving abroad to start operations in Iraq and are planning to enter Iran soon. We have managed our relations and networks well, and that has kept us on the rise.

TABLE OF CONTENTS
Focus: Lebanese-French Relations
Let’s be Franc
Lebanon shares a close relationship with its former colonizer, both in terms of economic relations and cultural identity among Lebanese. In spite of hardships like the presidential power vacuum and Syrian war next door, the bond is only getting stronger.
read articleFocus: Tripoli Economic Free Zone
The Tripoli Transformation
The Tripoli Special Economic Zone (TSEZ) is one of most ambitious projects in Lebanon at the moment. With an initial cost of USD27 million, it is meant to provide an alternative to the heavily centralized economic activity in Beirut, a new gateway for investments and trade to settle in northern Lebanon, and will transform the image of a long-neglected region.
read articleInterview
Dr. Freddie Baz, Vice Chairman & Group Strategy Director, Bank Audi
TBY talks to Dr. Freddie Baz, Vice Chairman & Group Strategy Director of Bank Audi, on the bank's increase in profits, dealing with currency devaluation, and working to turn the economy into an export-driven one.
read articleReview: Insurance
Life is a Rollercoaster
Unlike many emerging markets, Lebanon enjoys a relatively high insurance penetration rate and strong life segment, buoyed by compulsory lines and bancassurance. Competition remains fierce, however, and reform aimed at encouraging consolidation looks far off.
read articleInterview
Max R. Zaccar, Chairman of Commercial Insurance & President of the Association, Insurance Companies
TBY talks to Max R. Zaccar, Chairman of Commercial Insurance & President of the Association of Insurance Companies, on the resilience of the sector, increasing the already-high penetration rates in the country, and remaining one of the strongest insurance companies in the region.
read articleInterview
HE Arthur Nazarian, Minister, Energy and Water Resources
TBY talks to HE Arthur Nazarian, Minister of Energy and Water Resources, on the potential offshoots from oil and gas explorations, the country's National Energy Efficiency Action Plan, and attempts to increase renewable energy consumption.
read articleInterview
Wissam Zahabi, Chairman, Board of the Lebanese Petroleum Administration (LPA),
TBY talks to Wissam Zahabi, Chairman of the Board of the Lebanese Petroleum Administration (LPA), on making the investment climate attractive for foreign companies and becoming self-sufficient in energy.
read articleFocus: Sovereign Wealth Funds
Gas Pipe Dreams
Despite excitement over exploration of Lebanon's hydrocarbons, the creation of a sovereign wealth fund, which was included in legislation, has yet to take place. The country faces several obstacles in its path to creating and properly managing a fund.
read articleInterview
Pierre El Khoury, General Director, Lebanese Center for Energy Conservation (LCEC)
TBY talks to Pierre El Khoury, General Director of the Lebanese Center for Energy Conservation (LCEC), on the development of energy efficiency in Lebanon, awareness of energy conservation, and the country's 2020 renewable energy goals.
read articleInterview
Dr. Fady Gemayel, President, Association of Lebanese Industrialists (ALI)
TBY talks to Dr. Fady Gemayel, President of the Association of Lebanese Industrialists (ALI), on the group's work to promote industrialists, new developments in terms of industrial cities, and the future of industry in the country.
read articleFocus: Industrial Cities
Industrial Solution
Domestic and regional events have stifled Lebanon in building a strong national industry to protect and sustain its economy. Four proposed industrial zones throughout the country may provide it with the economic backbone it so desperately needs.
read articleInterview
Marianne Hoayek, Director of the Executive Office, Banque du Liban
TBY talks to Marianne Hoayek, Director of the Executive Office of Banque du Liban, on the roots of the Circular 331 concept, bridging funding gaps throughout the startup lifecycle, and the country's growing knowledge economy.
read articleRoundtable
Thinking It Through
On June 12, TBY and the American-Lebanese Chamber of Commerce (AmCham) organized a roundtable titled “Startup ecosystem sustainability: fostering cooperation to drive entrepreneurship." The participants discussed the impact of Circular 331, an initiative by Bank du Liban, the Lebanese central bank, to inject a potential of USD400 million into the local enterprise market and guarantee 75% of banks' investments in startups and startup support.
read articleFocus: Infrastructure for the startup ecosystem
The New Star
Startups are ubiquitous in Lebanon despite the difficulty of starting a business and the lack of services available to new businesses. However, a number of actors, both public and private, are innovating the environment and allowing startups to fulfill a greater role in the country's economy.
read articleFocus: Maritime Exports Bridge
Bridging The Gap
The conflict in Syria has wrought serious damage on the Lebanese economy, effectively closing off the country's trade routes through Syria. However, a new program geared at balancing the price disparities between land and sea transit is poised to help Lebanese industries.
read articleFocus: Real Estate
A Stimulus For The Rest Of Us
The real estate market in Lebanon is nothing like it used to be. The sector has slowed considerably, and demand has shifted from the traditional center, Beirut. However, stimulus packages from the central bank over the years have proven beneficial for all parties involved.
read articleInterview
Armand Pahrés, President, Lebanese Pharmaceutical Importers Association (LPIA)
TBY talks to Armand Pahrés, President of the Lebanese Pharmaceutical Importers Association (LPIA), on the development of legislation in the sector, boosting further innovation, and opportunities for Lebanon to become more self-sufficient in pharmaceuticals.
read articleFocus: Incentives for pharmaceuticals in Lebanon
Pharma Land
Lebanon has always been the region's leader in all things health related. Its pharmaceutical industry is no exception, and the country's incentives for international pharma companies to operate, manufacture, and distribute in Lebanon are only getting stronger.
read articleInterview
HE Elias Bou Saab, Minister, Education and Higher Education
TBY talks to HE Elias Bou Saab, Minister of Education and Higher Education, on the ministry's initiatives to improve the education system, ensuring access to education for Syrian refugee children, and reversing the brain drain in the country.
read articleInterview
Mohamed Harajli, Provost, American University of Beirut (AUB)
TBY talks to Mohamed Harajli, Provost of the American University of Beirut (AUB), on his upcoming plans for the university, the key role played by the AUB alumni, and fostering an entrepreneurial spirit among students.
read articleFocus: Programs to school Syrian refugee children
High Marks
Proportional to its population, Lebanon has taken in significantly more Syrian refugees than any other country. With the country now facing the problem of placing the tens of thousands of Syrian children in school, international donors and local and foreign organizations are making educational support a priority.
read articleInterview
Joseph G. Jabbra, President, Lebanese American University (LAU)
TBY talks to Joseph G. Jabbra, President of the Lebanese American University (LAU), on embracing technology at the university, the challenges of Lebanon's brain drain, and the importance of having international links with other institutions.
read article