- Until 2004, the whole insurance industry was very muddled because of the non-existence of an insurance law.
- Major drawback in the development is unemployment in the country.
- The National Security Committee introduced a social security scheme in October 2015, to cover all private sector employees.
Ken research announced recent publication on “The Insurance Industry in Palestine, Key Trends and Opportunities to 2020,” which offers insights on the comprehensive overview of the Palestinian economy and demographics, also provides vast information on the competitive landscape in the country and details of regulatory policy applicable to the insurance industry including the recent changes made in the regulatory structure. This report includes the amalgamation of Timetric’s research, modeling and analysis expertise, giving insurers access to information on segment dynamics and competitive advantages, and profiles of insurers operating in the country. It analyzes the result of natural hazards in the Palestinian insurance industry. This report guides to gain insights into key regulations governing the Palestinian insurance industry, and their impact on companies and the industry’s future which further identifies the growth opportunities and market dynamics in significant segments by providing significant performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, total assets, total investment income and retentions during the review (2011-2015) and forecast periods (2015-2020).
The Palestinian National Authority has been directing the insurance segment in Palestine since 1993 and its land scope in this part extended in 1994. The Palestinian insurance industry is little, undiscovered and in a time of development. Until 2004, the whole insurance industry was very muddled because of the non-existence of an insurance law. The industry is dominated by the non-life segment. By excellence of the agreement of exchange of powers, the Palestinian National Authority has turned into the approved body and manager of the insurance division in Palestine, in this way, conceding licenses to insurers and insurance agents and regulating their exercises. This area has suffered for quite a while the nonappearance of a Palestinian Insurance law. This riotous circumstance achieved its end with the foundation of the Capital Market Authority in 2004 turning into the approved body to manage, control and compose all organizations identified with the protection part. Moreover, the issuance of the Insurance law No. (20) for the year 2005, where numerous neighborhood and foreign insurance agencies have worked in Palestine, The quantity of working insurance agencies have achieved (10) organizations in 2012 working in the different sorts of protection. According to Ken Research.
Nine insurance agencies are working in Palestine, the insurance portfolio expanded by %2.62 in 2015 contrasted with 2014. Palestine has been facing an ongoing issue of unemployment in the country which is major drawback for the insurance industry to grow in a better way. A high unemployment rate can be found among the working age bunch (15-29 years)- particularly college graduates-because of an expertise mismatch among representatives and bosses. Amid 2015, PCMA, in collaboration with insurance agencies, prevailing with regards to expanding insurance reserves as per actuarial reports for all insurance agencies, where the insufficiency of these reserves incorporating those not enlisted in money related records has been minimized to an exceptional level since 2012, this expansion stability in insurance part and stay away from the sudden inversion and secure partners.