The global macroeconomic environment has gradually and significantly improved over the past few years, as evidenced by an increase in gross domestic product (GDP) in the majority of nations, as well as an expanding middle class and high net worth population with an ever-increasing number of financial resources. These reasons have contributed to the rise of both life and non-life insurance firms, with new companies joining the insurance sector and existing companies extending their businesses and making greater profits as a direct result of the growth in the insurance industry. A non-declining growth trend has been followed by the non-life insurance segment in Israel, which has allowed it to capture a significant share of the insurance industry. In 2014, it was reported that the non-life insurance segment accounted for 32.6% of the insurance industry’s gross written premium. The penetration ratio has followed a downward trend since 1998, both in life and non-life insurance, with the penetration ratio of non-life segment of the industry always being higher than the penetration ratio of life insurance segment of the industry. While the penetration and density ratios are higher in israel than in approximately one third of oecd countries, the penetration ratio has followed a downward trend since 1998. a mapping of the non-life insurance industry in Israel The primary sub-industries that make up the non-life insurance sector include motor, property, liability, marine, aviation, and transit insurance, with property and motor insurance constituting the majority of the market share in the non-life insurance sector. Motor insurance was the largest category in the non-life segment, accounting for 59.2 percent of the segment’s gross written premium in 2014. The property insurance category’s gross written premium posted a review-period cagr of 3.6 percent, and it accounted for 25.8 percent of the segment’s gross written premium in 2014. In contrast to the growing trend of increased competition seen all over the globe, the non-life insurance business in Israel has a very low degree of competition as a result of its highly concentrated market structure. This stands in stark contrast to the global trend. The non-life insurance market in Israel is very concentrated, with the top 10 firms accounting for 90.2% of the market’s total written premium in 2014. This indicates that the market is highly competitive. This has become one of the most significant challenges that the insurance business must face. As a result of the ongoing financial crisis and a number of internal issues, such as the implementation of stricter capital requirements, the return on equity investments has been decreasing. However, there are a number of chances that may be pursued if the current macroeconomic trend, industry-friendly legislation, the effect of natural disasters, and expansionist policy are taken into consideration. It is anticipated that the non-life insurance sector in Israel will see good development over the course of the following five years, with property and automobile insurance continuing to hold the majority of market share. However, a contrasting tendency indicates that the property insurance category will seize a larger portion of the gross written premium generated by the non-life insurance market in the years to come. In 2019, it is anticipated that the vehicle insurance category will rise with a value of 1.74 billion United States dollars, while the property insurance category will expand to 3.77 billion United States dollars. Because vehicle third-party liability insurance is a mandatory subcategory, the dominance of the motor insurance category is glaringly clear. The motor hull subcategory accounts for 58 percent of the total business in the motor insurance category, while the motor third-party liability insurance category accounts for 42 percent of the total business. It is also anticipated that there would be a greater degree of competition in the market as a result of an increase in the number of firms entering the sector. This is because the government has just begun working to reform the insurance industry. Additionally, more efficient market circumstances are projected as a result of increasing capital as well as the wave of adoption of advanced technology that has been occurring all over the globe. Several significant macroeconomic themes that are driving expansion in the non-life insurance business in Israel Israel’s non-life insurance sector was hit hard by the global financial crisis that began in 2007 and continued into 2008. However, as a result of improvements in GDP and other macroeconomic variables, the growth of the insurance industry gained momentum and showed stable and steady non-declining growth rates from 2009 through 2014, as shown by key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income, and retentions during the review period. During this time period, the review was carried out (2010-2014). It is anticipated that this pattern will go on into the subsequent years as well. • The population of Israel has been expanding, which has led to increased needs for all categories of insurance goods, with non-life insurance products in particular. This is one of the macroeconomic drivers that is driving development in the israeli non-life insurance business. • when a nation’s Gross Domestic Product (GDP) and GDP per capita rise, individuals amass more financial resources and property. •The Israeli insurance industry has been subject to a number of reforms since the year 2000. These reforms have the following goals: -developing the regulatory regime into a favorable one that is open to both Israeli-owned and foreign-owned insurers in order to increase competition and market efficiency. a considerable broadening in the scope of the operations that insurance firms engage in. -the expansion of Israel’s financial markets, including its incorporation into the global capital market, as well as the liberalization of rules governing investments -a lessening of the role that the government plays in the industry. • Because the Israeli population is vulnerable to natural disasters, they are more likely to get life and property insurance. Please visit the following page for more information on coverage: https://www.kenresearch.com/banking-financial-services-and-insurance/insurance/non-life-insurance-israel-key/25244-93.html reports that are connected to this one can be found at the following website: https://www.kenresearch.com/banking-financial-services-and-insurance/insurance/non-life-insurance-italy-opportunities-/7124-93.html https://www.kenresearch.com/banking-financial-services-and-insurance/insurance/non-life-insurance-jordan/8398-93.html Ankur Gupta, Head of Marketing and Communications at Ken Research may be reached at query@kenresearch.com or by calling +91-124-4230204.
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