During 2013, PCMA continued its efforts directed at improving its supervisory role over the insurance sector. Following PCMA’s requirement of all insurance companies to submit actuarial reports, PCMA received and analyzed the first group of these actuarial reports in 2013 and accordingly required insurance companies to increase their technical reserves.
As a part of PCMA’s commitment to promoting its regulatory and supervisory frameworks over the insurance sector and aligning them with the best international practices, PCMA embarked on a project in 2013 that aims to assess its supervisory framework against the global Insurance Core Principles (ICP) promulgated by the International Association of Insurance Supervisor (IAIS), and to develop an action plan to address key issues found by the assessment. It is noteworthy that the project is funded by the World Bank in cooperation with the Arab Forum of Insurance Regulatory Commissions (AFIRC). Beside PCMA, the project includes the insurance supervisors in the following countries: Libya, Tunisia, and Morocco.
Moreover, the insurance directorate completed the self-assessment phase of its insurance regulatory and supervisory framework against the Insurance Core Principles (ICPs) issued by the International Association of Insurance Supervisors (IAIS) and based on the results of the self-assessment, it prepared a strategic action plan that address the Palestinian insurance regulatory and supervisory framework inline with the best international practices like the (ICPs) while considering the Palestinian local context.
During 2015, PCMA, in cooperation with insurance companies, succeeded in increasing insurance reserves according to actuarial reports for all insurance companies, where the deficiency of these reserves including those not registered in financial records has been minimized to an unprecedented level since 2012, this increase stability in insurance sector and avoid the unexpected reversal and protect stakeholders.
By the end of 2016, 9 insurance companies were operating in Palestine. During the same year, the insurance sector experienced a growth by 18.7% from the previous year. Moreover, the insurance portfolio reached about $196 million, while the sector accounted for 2.4% from GDP at constant prices. All the figures mentioned above exclude the financial statements of Al-Ahleya Insurance Group.