Arope Insurance: Lines of Products and Services for Corporate and Individual Needs

Interview with Fateh Bekdache, Vice Chairman and General Manager of Arope Insurance

Can you start by giving us a brief history of AROPE Insurance?

AROPE Insurance was started back in 1974. We are celebrating our 40th anniversary this year. It was established by BLOM Bank (it was then Banque du Liban et d’Outre Mer) and SCOR SE, the largest French Reinsurer and number 5 worldwide. The founders had a vision of being one of the first bank insurers. If you look back at the history of bank insurance, it started in France in the late 70s, while AROPE started it in Lebanon in the early 70s. Since then, we have grown to be a major player in the Lebanese market. We expanded regionally in 2006. We were among the first to found an insurance company in Syria when that market opened up. Two years later we started two more operations in Egypt: AROPE Life Insurance and AROPE Insurance for Properties and Liabilities.

In the 40 years of its existence, how has AROPE maintained its growth and success even through all the regional and national instability?

We have been through a lot of instability for a long time now. I believe that we are truly resilient. The Lebanese people have proved that through all the ups and downs, they still look forward optimistically. With this in mind, we have run our business and grown into a very profitable company.

Can you discuss some details of your relationship with BLOM Bank?

Over the last 40 years, AROPE has maintained continuous growth and sustained development backed by BLOM Bank’s solid financial background and excellent track of good reputation and credibility. Strategically speaking, AROPE usually follows BLOM’s footsteps as a major shareholder with 88.97% of shares, thus depending on the strategy of the Bank we draw ours and act upon. AROPE and BLOM have a very strong synergy benefiting both companies.

These days all banking products are coupled with insurance policies. More and more banks are aware that they must have an alliance with an insurance company, in order to design and sell new products. The close relationship between BLOM Bank and AROPE has brought us to this position today. Bank branches everywhere are now a one-stop shop. You can get your car loan, home loan, credit card etc at the bank and they are all coupled with insurance. Banks also have better accessibility, much bigger distribution networks than the insurance companies. For them, it is a plus to have simple insurance products that can be sold over the counter and that’s a real time-saver for the consumer.

Talking about business distribution, how is your business distributed, corporate vs. personal?

At AROPE we offer all lines of business for individuals, SME’s and large corporations. In terms of volume, the personal line occupies most of our business portfolio and I personally believe this is the future. The market has a great demand and a big potential for life insurance policies, and investment products. In life insurance, we have the regular term life policy, saving policies that include retirement and education plans and the healthcare Plans for groups and individuals.

AROPE offers various types of insurance products, such as: Medical, Motor, Housing, and Property Insurance. We also have special covers like the bankers blanket, directors and officers’ liability and professional liability, in addition to a comprehensive line for Marine business. Basically, AROPE offers a wide range of covers meeting every possible need and specific requirement.

Which of those services are the most in demand?

The personal line products are most in demand, especially the medical and motor insurance. Demand on Life insurance is also increasing, because our social security system is not very attractive, so people tend to buy their own retirement plans to secure their future.

In your opinion, what type of insurance will have the greatest growth in the future?

The Personal line, definitely. Many people in Lebanon do not consider insurance as a priority.

What is your message to them and what are the benefits of insurance?

The insurance company is there for you to support you in times of hardship. If you look at the figures published by the Association of Insurance Companies in Lebanon and by the Ministry of Economy and Trade or by the Insurance Control Commissioner, you can clearly see the figures about insurance payouts. Individuals and companies are getting what they are supposed to get.

What are you doing to increase the desirability of insurance products?

We tackle this subject both directly and indirectly. Direct action includes marketing campaigns, increasing the visibility of insurance products among the public. Indirectly, via the Association and the Insurance Control Commission, we try to spread a good word. Insurance is a very delicate matter. In Motor Insurance for example, usually about 3 people are involved in a claim, or a minimum of 2 people. It’s hard to please everybody. This is a problem for insurance worldwide. We just try to spread the word on the need for insurance by making the facts and figures public. Banks have also helped in promoting insurance when an individual gets a loan combined with an insurance policy for the first time, and is treated well after an accident or claim, he will buy insurance with us even after he has paid off his bank loan. Service is key.

Did you see this increase in Lebanon?

Definitely. Public Awareness about insurance is increasing exponentially as you can see from the numbers.

How would you describe your competitive advantage?

Our strong commitment to being the best in the industry and offering good products and excellent service. I believe this is our competitive edge. AROPE has also the advantage of a vast geographic expansion by being present in over 70 BLOM Bank branches, plus AROPE’s 8 branches across Lebanon. We offer the advantage of quick and combined services. Customers pressed for time can renew their motor policy as well as renew or start a new policy in one go within half an hour. Moreover AROPE, as a pioneer in its field, is constantly replying to today’s technological requirements and developed back in 2012 its unique mobile application making insurance a more appealing and friendly topic to the public. This is to complement our 24/7 Call Center available around the clock to actively assist in any inquiry or service.
On the other hand, AROPE has a clear understanding of its customers’ needs. This is with reference to some specific delicate risks. We can be of assistance to our customers at any time, because we are well informed of their needs.

And finally, I’d like to mention our financial strength, know-how and expertise thanks to our Shareholders BLOM Bank and SCOR SE.

What is your message about Lebanon to our international audience? And what is your message about AROPE Insurance? And before you answer that is there anything more you want to talk about the insurance sector or the company itself?

I’d like to invite everybody to come to Lebanon and see it for themselves. You cannot know the country and the market from far away. Lebanon is a hub for business in the region. Looking at the figures of the banking sector and the insurance sector and you can tell that the country is growing. And there’s still a long way to go.

As for AROPE, we believe that the only thing that differentiates us from the big players in the market is our service. That’s why we are constantly innovating. And here I’d like to talk a little bit about our achievements. We were the first insurance company to get the ISO9001: 2000 certification in 2001. And in 2012, we launched our Mobile Application iAROPE, for Android, iOS and Blackberry, a very handy organizer to everyone and not only for AROPE Customers. In summer 2013, we inaugurated our new 9,000 m2 head office in a central location in Zalka, specially designed to help our customers and assure them of good service. And lately we launched, in collaboration with VISA AROPE Signature Credit Card.

Thank you.