Insurances

The Insurances market in Israel is projected to reach a gross written premium of US$22.67bn in 2024.
Life insurances dominate the market with a projected market volume of US$12.38bn in 2024.
The average spending per capita in the Insurances market in Israel amounts to US$2.43k in 2024.
When compared globally, the highest nominal value is reached the United States with US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 3.50%, resulting in a market volume of US$26.92bn by 2029.
In global comparison, the United States will generate the most gross written premium with US$3.8tn in 2024.
Israel's insurance market is experiencing a surge in demand for cyber insurance due to the country's advanced technology sector and increasing cybersecurity threats.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Israel has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Israel have been shifting towards more personalized and digital solutions. Customers are increasingly looking for tailored insurance products that meet their specific needs and preferences. This trend is in line with global market developments where customers are seeking more customized and convenient insurance options. Trends in the market in Israel include a rise in demand for cyber insurance as businesses and individuals become more aware of the risks associated with cyber threats. Additionally, there is a growing interest in health and life insurance products, driven by changing demographics and increased focus on personal well-being. The market is also seeing a rise in Insurtech companies offering innovative solutions to traditional insurance challenges. Local special circumstances in Israel, such as a strong technology sector and a culture of innovation, have contributed to the growth of the Insurances market. The country's reputation as a hub for technological advancements has led to an increase in Insurtech startups and investments in the sector. Moreover, the government's support for technological innovation has created a favorable environment for insurance companies to develop new products and services. Underlying macroeconomic factors, such as a stable economy and a growing middle class, have also played a role in the development of the Insurances market in Israel. The country's strong economic fundamentals have provided a solid foundation for the insurance industry to expand and diversify its offerings. Additionally, increasing disposable incomes and a focus on financial planning have driven demand for a wide range of insurance products in the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.