Continued Growth of Israel life insurance Sector
Posted on 23 September 2016 by KenResearch
Ken Research has recently announced its publication titled, “Life Insurance in Israel, Key Trends and Opportunities to 2019”, which aims at providing in-depth market analysis of Israel’s life insurance segment. It further provides information about growth prospects, distribution channels, top life insurance companies and historic value of review period (2010-14) and projected value of forecast period (2014-19).
Looking at the Israel’s life insurance segment, it was the largest segment of Israel’s insurance industry in 2014. The country has one of the most developed insurance market in central Asia with highest insurance penetration and highest insurance premium per capita.The Israeli life insurance segment is highly consolidated, with the five leading insurers accounting large chunk of the segment's gross written premium in 2014. This high degree of consolidation and low competitiveness in life insurance department of Israel has great impact on insurance rates in Israel. Insurance is dominated by five leading market players i.e. Migdal, Clal, Harel, Phoenix and Menorah-Mivtahim. Further, 11 insurers licensed to conduct life insurance business in Israel.
Rising profitability in Israel’s life insurance segment
Fast pace expansion of life insurance business is observed with substantially high profit levels. Remarkable stability and extraordinary profitability has been witnessed in life insurance saving products. These products are associated with low risk and high profitability. Recent trends also show positive growth of life insurance industry of Israel. According to OECD global insurance statistics, annual real gross premium growth and nominal growth in gross claim payment was rising in 2012-13 period. Gross written premium of Israel’s life insurance segment rose substantially in 2014. Life insurance segment was largest growing segment in Israel’s insurance industry. The life insurance segment’s share is expected to grow further in future. This expected expansion of life insurance segment is attributed to various factors like rising life expectancy, rising gross domestic product, strong agency network and recent pension reforms which would drive fast paced growth in this sector.
Global life insurance industry
Globally though economic environment was showing some signs of trouble but sense of optimism was prevailed in global life insurance market. There was healthy growth of life insurance industry even though growth was negative in many countries. Demand for life insurance products were rising throughout the world.
Various macroeconomic trends seen globally are:
* Diversion in gross premium growth in different countries.
* Gross premium growth in non-OECD countries greater than OECD countries.
* Nominal claims in the life insurance segment grew on modest pace.
* More growth in life segment was seen in country with higher GDP.
To know more on coverage, click on the link