Business Monitor International

Israel Insurance Report

Published 13 November 2013

  • 67 pages
  • Instant access to your report online and PDF format through your account library
  • Free related articles sent monthly
Israel Insurance Report

BMI View: The main themes and trends within Israel's insurance sector have remained unchanged for several years. As is the case in South Africa and Taiwan, a peculiar geopolitical and financial history has resulted in the domination of the sector by a small number of diversified financial services organisations, whose interests generally go beyond insurance. These organisations are, in world terms, sophisticated and large. However, they do not constitute a cosy oligopoly: the normal situation includes downwards pressure on prices and margins, competition by way of product innovation and development of new distribution channels and attention of antitrust regulators. The market is emphatically open to foreign competition. However, the strengths of the entrenched local players are such that few foreign insurers see the market as offering an attractive opportunity.

The demographics of Israel are such that the life segment is continuing to grow steadily, if not rapidly. However, and in spite of being in a steadily rising trend, life density (premiums per capita) are not particularly high for a country of Israel's per capita incomes. This is because conventional life insurance faces substantial competition as a conduit for organised savings from pension funds, the main providers of which are the leading local life insurers. Through 2013, the main change to the competitive landscape is that Harel has acquired the life insurance business of Eliahu, and the asset management and mutual fund operations of Clal Finance. Thanks to the better performance of financial markets through 2013, most of the companies in the life segment have reported a significant improvement to investment earnings in the latest year.

The non-life segment is also mature. Low double-digit growth in health insurance premiums is offset by very pedestrian rises (or worse) in premiums for other lines. Nevertheless, strengths are evident. Retention rates are high (and, by the standards of other...

Table of Contents

Executive Summary
Table: Israel Total Premiums, 2010-2017
Key Insights And Key Risks
SWOT Analysis
Israel Insurance Industry SWOT
Israel Political SWOT
Israel Economic SWOT
Israel Business Environment SWOT
Life Sector Overview
Middle East And North Africa Life Sector Overview
Table: Middle East And North Africa's Life Premiums, 2010-2017 (US$mn)
Israel Life Sector Update
Life Industry Forecast Scenario
Table: Israel Life Premiums, 2010-2017
Growth Drivers And Risk Management Projections
Table: Israel Insurance Sector Key Drivers - Demographics, 2010-2017
Non- Life Sector Overview
Middle East And North Africa Non-Life Sector Overview
Table: Middle East And North Africa's Non-Life Premiums, 2010-2017 (US$mn)
Israel Non-Life Sector Update
Non- Life Industry Forecast Scenario
Table: Israel Non-Life Premiums, 2010-2017
Macroeconomic Outlook
Table: Israel - Economic Activity, 2011-2016
Table: Macroeconomic Data And Forecasts, 2010-2017
Political Stability Outlook
Table: Middle East And Africa Defence & Security Ratings
Table: Insurance Key Drivers, Disease Adjusted Life Years, 2010-2017
Insurance Risk/Reward Ratings
Table: Israel's Insurance Risk/Reward Ratings
Table: Middle East and Africa Insurance Risk/Reward Ratings
Competitive Landscape
Major Players In Israel's Insurance Sector
Local Company Profiles
Country Snapshot
Table: Israel's Population By Age Group, 1990-2020 ('000)
Table: Israel's Population By Age Group, 1990-2020 (% of total)
Table: Israel's Key Population Ratios, 1990-2020
Table: Israel's Rural And Urban Population, 1990-2020
BMI Methodology
Insurance Risk/Reward Ratings
Table: Insurance Risk/Reward Indicators And Rationale
Table: Weighting Of Indicators

The Israel Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's Israel Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Israeli insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for Israel to test other views - a key input for successful budgeting and strategic business planning in Israel's insurance market.
  • Target business opportunities and risks in Israel through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

Regional Outlook

Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.

Business Environment Rankings

BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.

BMI Industry Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.

Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).

Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).

Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).

Competitive Landscape & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%


'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc