BMI View: Unlike its peers in other countries in the Middle East and North Africa, insurance is well established as a source of protection and as a part of the organised savings system. Each of the major segments has long been dominated by four large composite financial services groups and will continue to be so through the forecast period - notwithstanding that the shareholders of some of the leading insurers will change over the coming five years.
In part because of its complex geopolitical situation - which has from time to time restricted access to global capital markets - Israel's insurance sector is dominated by five large and multi-faceted financial services groups, most of which are listed and all of which have strategic shareholders. Each of these groups has a substantial presence in life insurance (including pensions, other savings solutions and protection solutions), property and casualty insurance and health insurance. (NB, these last two are regarded in Israel as separate businesses. However we combine them in the non-life segment.)
In both segments, the leaders have numerous advantages. In no particular order, these advantages include: scale; access to capital through the local stock market and elsewhere; broad product portfolios - even within segments; capacity to innovate; strong brands; generally good compliance by customers with laws supporting mandatory insurance lines; and long-established distribution relationships. Because of the growth of the economy, and demographic features supporting higher demand for savings and protection products, both segments should enjoy steady expansion in local currency terms through the forecast period.
In the short-term, the development of premiums in USD terms will likely be held back by the slippage of the ILS. Non-life penetration will likely fall over the next five years: this is mainly because of the downward pressure on prices that we anticipate in the motor vehicle insurance sub-sector. The financial...
The Israel Insurance Report has been researched at source and features BMI Research'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.
- 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.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. 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.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.