Israel Insurance Report

Published 07 April 2015

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Israel Insurance Report

BMI View: Private expenditure will be bolstered by a number of positive factors, including subdued inflation, low unemployment and expansionary fiscal and monetary policy, with tax cuts and public sector wage hikes boosting expenditure. This will drive the growth of the life sector which, combined with a rise in life-spans, will see consumers more concerned about saving for the future. Rising wealth in Israel will also see greater demand for motor vehicle insurance, as greater disposable income leads more consumers to purchase cars, and personal accident insurance, as overall healthcare expenditure rises.

Gross life premiums in Israel will decline by 4.2% in 2015 to USD7.4bn. However, this will predominantly be due to currency effects, with the sector actually experiencing growth o f 4.4% in local currency terms. The rise if life premiums will be driven by an increase in per capita income, which is expected to rise from USD39,435 to USD46,777 between 2015 and 2019. In the long term, we expect life premiums to continue to represent around 2.6% of GDP, while at the same time representing 60.8% of total written premiums by 2019, an increase from 57.7% in 2014. A key risk to insurance firms is the rise in the claims ratio, which has grown significantly from 44.5% in 2008 to 50.8% in 2013, demonstrating a rise in the number of claims over the past five years.

Israel's non life insurance segment will remain small even up to 2019 due to the lack of affordability and competition in the sector. Although motor insurance is expected grow in value over the coming five years, its share as a percentage of non-life premiums will fall from 44.6% in 2015 to 42% in 2019 as the share of personal accident insurance grows rapidly from 5.2% in 2015 to 6.2% in 2019. This is driven by an overall increase in health expenditure, which is forecast to grow from ILS32.3 to ILS41.9 between 2015 and 2019. We also expect to see a fall in transport insurance as the number of car owner's...

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 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.

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.

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.

Company Profiles*

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.

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'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