The Palestinian National Authority has been supervising the insurance sector in Palestine since 1993 and its geographical scope in this sector expanded in 1994.
By virtue of the agreement of transfer of powers, the Palestinian National Authority has become the authorized body and supervisor of the insurance sector in Palestine, thus, granting licenses to insurers and insurance agents and supervising their activities.
This sector has suffered for a long time from the absence of a Palestinian Insurance law. This chaotic situation reached its end with the establishment of the Capital Market Authority in 2004 becoming the authorized body to supervise, control and organize all businesses related to the insurance sector. Likewise, the issuance of the Insurance law No. (20) for the year 2005, where many local and foreign insurance companies have operated in Palestine, The number of working insurance companies have increased to (10) companies in 2010 operating in the various types of insurance.
The insurance portfolio increased by 21% in 2010 compared to 2009, with a total value of $126 million, while total paid up value of claims reached $66.5 million in 2010 compared to $56 million in 2009. The PCMA, in its endeavor to improve conditions and to reduce the risks in the insurance sector, has conducted an actuarial study with the help of external actuaries. It is expected by the completion of this exercise that insurance companies will be called upon to rectify their positions accordingly.