Thread by @al1merhej

I started recently looking at the saving plans with the insurance firms in Lebanon and where the money has been invested. Few comments:

1- the client does not have a clue where the money is invested. When you ask you do not receive a clear answer. No transparency. No reporting. No relevant benchmark for dividends payments.
2- fees are not clear nor disclosed to the client.
& this is a case study from Allianz SNA

In this example the 5% dividends payment in a saving policy does not have a reference / benchmark not fees disclosed. The minimum in the policy is 4%.
When asked on the phone the client was told the money was invested in Eurobonds and deposit with Lebanese banks

The policy contract is a schedule (funny enough) of a page and half. The real terms and conditions are mot signed by the client. Consumer protection is absent and clearly the client signed without understanding the fees structure as no fees were mentioned in the contract.

The investment wording is ambiguous. 90% of he investment should be in fixed income. And the custodian should be BBB rated for the Intl investments and Midclear for the local investments.
When the client asked they told him the money is in Eurobonds and deposit with local banks

It is unusual to link the investment o the custodian rating. Does it mean they can invest in junk bonds but with BBB rates custodian?
If they invested the money in deposit, than there is a breach of contract as deposit does not qualify for fixed income products.

What is worring is that the the investments of the proceeds of insurance policies by local insurance companies with... the local banks and Eurobonds. In fact $ 2.042 bn are invested by the insurance companies.
These amounts are in the same bucket as the deposits ... sacred.

What triggered everything for me is a friend who told he was counting on his education policy for his kids to send them to the USA to live and study. Another friend is thinking seriously whether his life insurance policy has become worthless.

A positive ray of light... some insurance companies operating in Lebanon are subsidiaries of Intl companies and the client can sue the mother company. The contracts are poorly drafted that the client can actually win an indemnity. (Lack if transparency, misinformation...

Breach of investment guidelines, lack of proper signing on the terms and conditions. & by suing the mother company in the foreign jurisdiction the incentive for a settlement is greater.
Can the nerds look into this?
@AzarsTweets @HuseinNourdin @Mohdfaour89 @lebfinance

Here is an example of a statment.. no mention of fees. No mention of investment benchmark return, etc. I forgot to mention that as per the policy, the company can amend the return as it likes.
Will keep you posted on the course of action

So after discussing with #allianzsna it seems they also do not have a clue where the money is invested or at least are not willing to share info, stating that thebpemiums were invested or Linked (depending in the person that answers you) to a certain Fund

Fund refereed to Allianz Sna general fund. Upon checking the Capital markets authority website there is no mention of this fund. When asking about the assets allocation of this fund, the answer is Eurobonds, deposits and other investment according to lebnese insurance laws.

No pie chart of assets allocation percentage can be provided as it is a trade secret and the investments are fluid... interesting.
So they are declaring a distribution without evidence. They are not transparent.

Law n. 160 / 2020 stopped all time limits on all contracts (المهل) till 30 July 2020. This includes the loan repayments before they send you a notice, the insurance premiums, the rent payments etc. Would be good to hear the lawyers opinion on this.

To all policy holders that have a saving life policy with #allianzsna and who would like toreconsider their policy, we are doing a research group to assess the rights of policy holders.Please send me a message to join the group #allianzsnapolicyholders
Banks who sold the policies

Seems a real meltdown in the life insurance saving policies is to happen with the Lebanese insurance companies. Clients are faced with:
1- keep on paying premiums with fresh $
2- pay premiums with #lollars
4- pay in Lira (some insurance companies are accepting (hear desperation)

More info. Invested in a Allianz Sna general fund )cn you be more ambiguous than that???)

@HuseinNourdin @AzarsTweets any comments

@Mohdfaour89 @AdibChristian