Israel Life & Non-Life Insurance Market Size (2024 - 2029)

The Israeli insurance market is characterized by intense competition, particularly in personal lines insurance, which contributes to a soft market environment. The market size is influenced by regulatory measures aimed at increasing transparency and competition, such as reduced capital requirements for digital insurers. The integration of technology and insurtech innovations is driving the development of new products and enhancing the efficiency of insurance operations. This competitive landscape, coupled with the use of digital tools for comparing insurance options, is shaping the market dynamics and influencing the overall market size.

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Market Size of Israel Life & Non-Life Insurance Industry

Insurance in Israel
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.00 %
Market Concentration Medium

Major Players

Israel Life & Non-Life Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Israel Life & Non-Life Insurance Market Analysis

The global spread of COVID-19 in 2020 has created major challenges around the world, with individuals at risk of being infected by a contagious and deadly virus and many businesses shut down for public health purposes. This global health and economic crisis are also set to have an impact on insurance companies. They are likely to face charges in the demand for insurance policies and claims experience as well as impacts on the value of the assets that they hold to meet their obligations to policyholders.

Israeli insurance regulator has increased insurance product transparency, the insurance regulator has issued various rules and circulars, under which insurers must disclose monthly information regarding insurance programs, exclusions, limitations, and any updates to rates. The regulator may find an insurer that breaches these rules, even as much as USD 1 million. To increase competition between insurers, the regulator significantly reduced the capital requirement for digital insurers. The regulator aims to lower the requirement from digital insurers in various technical aspects which will enable them to operate more economically and efficiently.

The Israeli insurance market will continue to be very competitive, dictating a soft market, especially in personal lines insurance. It is expected that the high level of competition and developments in technology will lead to creative new products in the market and an increase in sales of direct insurance. Insurtech is very developed in Israel. Israeli insurance companies are looking at ways to transform parts of their activities into digital formats, such as the sale of policies, underwriting information, and handling of claims, in personal insurance. As a result of the growing competition, digital search engines compare terms and costs of insurance offered by competing insurance companies, to present tools to the consumer to find the most suitable insurance.

Israel Life & Non-Life Insurance Industry Segmentation

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. The Israel Life & Non-Life Insurance Market is segmented by Insurance Type (Life Insurance and Non-Life Insurance) and Distribution channel (Direct, Agency, Banks, and Other Distribution Channels).

By Insurance Type
Life Insurance
Individual
Group
Non-Life insurance
Home
Motor
Others
By Channel Distribution
Direct
Agency
Banks
Other Distribution Channels
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Israel Life & Non-Life Insurance Market Size Summary

The Israeli life and non-life insurance market is characterized by a high level of competition, driven by regulatory changes and technological advancements. The insurance regulator has implemented measures to enhance transparency and foster competition, particularly by reducing capital requirements for digital insurers. This has encouraged the adoption of insurtech solutions, enabling insurers to digitize various processes such as policy sales, underwriting, and claims handling. The market is dominated by a few composite insurance groups, with major players like Harel Insurance Investments & Finance Services, Migdal Holdings, The Phoenix, Menora Mivtachim, and Clal Insurance Enterprises leading the way. These companies are actively engaging in partnerships, acquisitions, and mergers to expand their market share and innovate their product offerings.

The economic landscape in Israel, influenced by factors such as GDP per capita and the fintech sector's growth, plays a significant role in shaping the insurance market. Despite challenges posed by the COVID-19 pandemic, which temporarily increased unemployment and affected economic growth, the insurance industry is poised for recovery and expansion. The fintech and insurtech sectors have seen substantial investment, with a notable number of unicorns emerging in these fields. This influx of capital and the ongoing digital transformation are expected to drive the development of new insurance products and increase the sales of direct insurance. The market's resilience and adaptability are key to its continued growth and competitiveness in the region.

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Israel Life & Non-Life Insurance Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Market Opportunities

    5. 1.5 Industry Value Chain Analysis

    6. 1.6 Insights into Latest Technological Innovations and Recent Trends in the Market

    7. 1.7 Insights on Government Regulations in the Industry

    8. 1.8 Porters Five Force Analysis

      1. 1.8.1 Threat of New Entrants

      2. 1.8.2 Bargaining Power of Buyers

      3. 1.8.3 Bargaining Power of Suppliers

      4. 1.8.4 Threat of Substitutes

      5. 1.8.5 Intensity of Competitive Rivalry

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Insurance Type

      1. 2.1.1 Life Insurance

        1. 2.1.1.1 Individual

        2. 2.1.1.2 Group

      2. 2.1.2 Non-Life insurance

        1. 2.1.2.1 Home

        2. 2.1.2.2 Motor

        3. 2.1.2.3 Others

    2. 2.2 By Channel Distribution

      1. 2.2.1 Direct

      2. 2.2.2 Agency

      3. 2.2.3 Banks

      4. 2.2.4 Other Distribution Channels

Israel Life & Non-Life Insurance Market Size FAQs

The Israel Life & Non-Life Insurance Market is projected to register a CAGR of less than 5% during the forecast period (2024-2029)

Harel Insurance Investments & Finance Services, The Phoenix, Menora Mivtachim, Clal Insurance Enterprises and Direct Insurance are the major companies operating in the Israel Life & Non-Life Insurance Market.

Israel Life & Non-Life Insurance Market Report Snapshots

Israel Life & Non-Life Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)