Israeli insurers rely heavily on foreign reinsurers such as Swiss Re, Munich Re and Lloyd's for reinsurance
Most of the reinsurance taken by insurance companies is to cover earthquake insurance risk.
In its latest publication “REINSURANCE IN ISRAEL,KEY TRENDS AND OPPORTUNITIES TO 2019”, Ken research provides the history and forecast of the Israeli reinsurance market in order to make strategic business decisions. Along with it, it also helps to understand the demand side dynamics, market trends, growth opportunities in different segments of the reinsurance market and the steps taken by the government to regulate the Israeli reinsurance market.
As there is no separate requirement for a license for a company to offer reinsurance services, most of the foreign insurance companies in Israel can smoothly carry out their reinsurance business in Israel. Most of the domestic companies in Israel have reinsured with the foreign reinsurers.
Insurance companies seek reinsurance for the two major categories of insurance; life insurance and non-life insurance. These two broad categories can be further classified into small categories as vehicle insurance, land insurance in non-life category and medical insurance and others in the life insurance category. In 2014, 67.5% of the total premium ceded to reinsurers was of life insurance segment whereas under life segment, Life and personal accident and health insurers accounted for 18.8% and 13.8% respectively.
Israel is also one of the highly developed nations and has a high per capita income. There are many other such economic factors that act as drivers to the growth if the Israel’s reinsurance market. With nearly 78 cities and many towns, 92% population of Israel resides in the urban area, making Israel a highly urbanized country. It has been noticed that the urban population is more inclined towards insurance facilities than the rural population for obvious reasons like exposure, reach and capabilities.
Israel is prone to earthquake with quite a high risk and this has also had an impact on the reinsurance market as most of the insurers opt for reinsurance to share the high risk of earthquake by ceding premiums to reinsurers.
Key points covered in the report:
· Historical and forecast values for the Israeli reinsurance segment 2010-2014 and 2014-2019 respectively
· Detailed analysis of the reinsurance ceded from various direct insurance segments and the growth prospects in different segments
· insights on key regulations and their impact on companies and industry’s future
· Demographic and economic overview of Israel
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