- Israeli non-life insurance market expected to show positive growth rates over the period 2014-2019, with property insurance category taking the lead as against the current scenario where motor insurance is the largest category in the non-life segment.
- Israeli non-life insurance industry is highly concentrated with the presence of composite insurance groups dealing with both life and non-life insurance products. 10 leading companies account for 90.2% of the non-life segment’s GWP in 2014.
Ken Research announced its latest publication on “Non-Life Insurance in Israel, Key Trends and Opportunities to 2019”offer insights on the changing trends and potential opportunities within the Israeli non-life insurance industry. The publication includes an insightful analysis ofproduct category, Israeli economy and demographics, comparison of the Israeli insurance industry with its regional counterparts, various distribution channels, natural hazards and their impact on the Israeli insurance industry, competitive landscape and regulatory and governance policy.The analysis of the aforementioned trends has been done on the basis of key categories within the industry such as motor insurance, property insurance, liability insurance, marine, aviation and transit insurance. It provides historical values for the Israeli non-life insurance segment for the report’s 2010-2014 review period, and projected figures for the 2014-2019 forecast period.
The non-life segment of the insurance industry of Israel has always shown positive growth rates and non-declining pattern of growth. Motor insurance and Property insurance upward growth trend is expected to continue in next five years as well. However, on account of increasing GDP and GDP per capita, property insurance category is expected to lead the non-life insurance market in coming years.
As against rising competition in insurance industry all over the world, Israeli Insurance industry exhibits low level of competition because of their highly concentrated market structure.The Israeli non-life segment is highly concentrated. This is feature unique in itself as well has imposed challenges to the industry as well as to the regulatory bodies. The presence of composite insurance groups has also posed problems. Hence, government is introducing various reforms to increase competition in the market and increase efficiency through use of technology. Among the various distribution channels, authorized agencies played a key role in the expansion of the Israeli non-life segment in 2014.The Israeli insurance industry is governed by the CMISD of the Ministry of Finance.
Global Insurance Industry
Gradually the macroeconomic environment has significantly improved all over the world with rising GDP in most of the countries and increasing middle class and high net worth population with more and more financial resources. These factors have led to the growth of life and non-life insurance companies with more number of companies entering the insurance sector and the existing companies expanding their business and earning more profits. Growth in 2014 was notable because global insurance premium beat GDP growth for the first time in five years. Emerging Asia and Latin America has achieved the most growth.
Some of the prominent trends in the global insurance industry include:
- Emerging markets are growing significantly more than the mature markets because of their lower penetration level and high nominal GDP growth.
- The penetration rate for mature markets far exceeds that of emerging markets and will continue to exceed in future since the growth seen in emerging markets is not enough to largely surpass nominal GDP growth and thus to increase penetration.
- Competition in the market is rising, which is softening the pricing conditions and hence tightens the profit margins.
- Many insurers are investing in digital platforms that strengthen their relationships with customers across all product classifications and geographies.
- Most regions saw positive Life insurance growth in 2014, but the amount of the increase, as well as the factors responsible, varied by region; Growth in the P&C market held steady in 2014&the Health segment grew 8 percent in 2014, up from 5 percent annually in the two previous years.
Key Topics Covered in the Report:
- Category wise detailed analysis of the Israeli non-life insurance industry
- Comparison of the Israeli insurance industry with its regional counterparts
- comparison of the Israeli insurance industry with its regional counterpartsduring the review period (2010–2014) and forecast period (2014–2019)
- Comprehensive overview of the Israeli economy and demographics
- Analysis of distribution channels operating in the segment
- Natural hazard and their impact on the Israeli insurance industry
- Detailed analysis of the competitive landscape in the country
- Legal system, governance and regulatory bodies.
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