Life Insurance in Israel is Consolidated Sector: Ken Research
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).
The life insurance segment of capital market division manages
variety of issues including supervision and regulation of insurance companies
and its agents. Looking at the Israel’s life insurance segment, it was the
largest segment of Israel’s insurance industry in 2014 having accounted for 51.6% of the Israeli Insurance
industry's gross written premium in 2014. This report 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)
Various
categories of life insurance plans in Israel are explained in figure below:
The Israeli life insurance segment
is highly consolidated, with the five leading insurers accounting for more than
90% 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.Share
of these firms in life insurance segment are given in the table below:
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.
Israel: life insurance commission (in percent of gross premium)
Recent trends also show positive growth of life insurance industry
of Israel. Key macroeconomic trends that show modest growth of life insurance
sector are:
* According to OECD global insurance statistics, annual real gross
premium growth was 2.7% p.a. (2012-13)
* According to OECD global insurance statistics, nominal growth in
gross claim payment was 2.2% p.a. (2012-13)
* Gross written premium of Israel’s life insurance segment rose
from USD 5.6 Billion IN 2010 to USD 8.6 Billion IN 2014.
* The life insurance segment accounted for 51.6% of Israeli’s
insurance industry’s gross written premium in 2014.
* The life insurance segment’s share is expected to increase from
51.6% in 2014 to 55.3% in 2019.
Key
Macroeconomic Trends Driving Growth of Card Industry in Denmark
Life insurance industry is projected to grow further in Israel but
however growth is expected to be continue at a slower pace than before.
Some macroeconomic factors driving growth in Israel’s life
insurance segment are:
** Rising life expectancy and aged
population
Population above 65 years of age is increasing rapidly from 0.84
million in 2010 to 0.90 million in 2014. Further according to the World Bank,
Israel has one of the highest life expectancy in the world i.e. 82 years. These
factors are leading to increasing awareness about life insurance in the
citizens of Israel. Further, citizens are investing more in life insurance
policies to comfortably support their old age.
** Strong growth of GDP contributing to
growth of life insurance market
Israel has shown stupendous economic growth and has shown better growth than other OECD nations in last 5 years. Nominal GDP and per capita GDP are both increasing significantly.
This strengthening of GDP of Israel is playing a pivotal role in
rising demand for life insurance products in economy driving growth of life
insurance sector of Israel.
** Strong agency network
Strong agency network, customer support, strong advertising
campaigns are also creating awareness amongst people which is also a factor
contributing to fast pace expansion of insurance market in Israel.
** Recent pension reforms
Individuals who started saving after January 1995 period can
switch these savings to insurance policies and provident funds without any tax
deductions or fine payment. This also aided in improvement of insurance
industry of Israel.
To know more on coverage, click on the
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Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
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