The change in the rate of the Syrian pound to the USD is having an impact on insurance installments; the fluctuation of exchange rates affects the strategies set by the insurance companies, which in return affects the installments. The Insurance Supervising Committee ISC has referred to this matter as a result of the fluctuation in the exchange rate of the Syrian pound to the USD.
"The fluctuation in the exchange rate of the Syrian pound affects the work of the insurance companies and their installments. Insurance against car accidents, for instance, is expected to increase due to increase in the price of imported spare parts, and though the number of the agents remains the same but the amount of money earmarked for some agents might increase as a result of the changes in the rate of the Syrian pound". Mr. Iyad Al Zarra'a –Director of the ISC – was reported saying.
Regarding the touristic resorts, they are required to sign an insurance contract for the resort itself and another one for liability, but since the work size in these resorts is getting reduced, many resorts are closing; hence there is no need to sign insurance contracts, which affects the productivity in this sector and causes it to reduce. Life insurance, on the other hand, is not affected because it is related to the person himself. Nowadays such insurance (life insurance) offers an opportunity for companies to benefit from, adding to that the high banking revenues. Consequently, life insurance will not be affected.
On his part, the General Director of the ISC has revealed that ensuring transportation and goods transporting is linked to trade movement, and with the existence and fulfilling the needs of alternative markets there is no sign of price changes in these markets so far. He also noted that some fields offer a positive solution for general insurance, particularly health insurance and the mandatory car insurance, whereas elective insurance fields remains dependant on the demand and supply.
On Monday 12th December 2011 the Central Bank of Syria defined the exchange rate of the Syrian pound to the USD for both converting and money orders in 54,37 with an increase of 12 qirshs if compared with pound rate of the previous Sunday. While the selling rate of the USD was 54,69 to Syrian pound.