Israel

Market Regulation: Governed by the Capital Markets, Insurance and Savings Authority. Axco’s monitoring focuses on 2026 digitisation of the pension clearinghouse and increasing retail competition.

Non-Life Market Trends: Demand is high for Political Risk and Force Majeure cover; Axco’s analysis shows that the high-tech sector continues to drive double-digit growth in Cyber and D&O.

Distribution Channels: Independent agents remain the dominant force; Axco analysis highlights that direct insurance companies now hold a significant share of the motor and home segments.

Key Risks & Outlook: Geopolitical risk is the defining factor; Axco data indicates that domestic insurers are increasingly turning to international partners to manage tail-risk volatility.

Insurance companies: Israeli insurers operate in an open market where competition between companies is fostered but is one which is highly regulated by the authorities. Axco Navigator details there are 33 insurance companies are authorised to write business in Israel, of which 22 operate in non-life classes and11 in life-classes.

Insurance Statistics: Axco reports written premiums in 2024 increased by 9.3% to ILS 34,417 Mn with motor the largest class of business, accounting for 60% of premiums. Insurance penetration stands at 1.72%.

Providing expert analysis, independent market insight and company data on the insurance industry.

Insurance market reports are produced following a country visit with interviews with professionals working in the sector with systematic updates to information throughout the cycle. Covering market developments, macroeconomic factors and comprehensive details of the regulatory environment including relevant taxation as well as market indicators and company statistics.

Axco’s Israel Non-Life Insurance Market Report (P&C) also comprises a detailed analysis of lines of business and sub-classes such as natural hazards, property, construction and machinery breakdown, motor, workers compensation & employers’ liability and liability.

The Life & Benefits Report for Israel includes detail on social security, healthcare, individual life assurance and pensions information as well as market statistics and life company statistics

Key Benefits

• Superior market insights
• Crucial compliance information
• Risk assessment and profitability

Information for Israel can be seen in:

Since its proclamation in 1948, Israel has succeeded in building a prosperous and liberal economy. At the same time, it has been involved in several bloody conflicts with neighbouring Arab countries. Israel has a diversified economy with a rapidly expanding high-tech sector. The economy is based on services and features growing industries in biotechnology and chemicals.

The Israeli insurance market (life and non-life combined) is the largest in the Middle East. In 2018 total life premium grew by 6.6% to ILS 35,963.3mn; in 2019, non-life business (including PA and healthcare), totalled ILS 32.01b. In 2020, there were 21 participants in the non-life market, including the state-owned entities. The five largest companies in the non-life market accounted for just over 70% of non-life premiums. Ten companies write life business.

The distribution of insurance is primarily in the hands of independent insurance agents and agencies. They transact both life and non-life business. Agents, including the major ones, have traditionally been privately owned, but local insurers and international broking groups have increasingly bought into these organisations.