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 transfers 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.
Over a long period, the insurance sector has suffered from the absence of an appropriate Palestinian insurance law. This chaotic situation ended with the establishment of the Palestinian Capital Market Authority in 2004, thus becoming the authorized body to supervise, control and organize businesses related to the sector. Likewise, the issuance of the insurance law No. “20" for the year 2005 helped in reorganizing the insurance sector.
In cooperation with concerned parties, PCMA has developed detailed policies aimed at spreading awareness about insurance among members of the society and creating an enabling environment that is suitable for the development and growth of the insurance industry, thus benefiting the overall economic activity in Palestine. PCMA also seeks to raise and improve its performance in accordance with the best international standards and practices through the development of rules and regulations needed to improve the effectiveness of its supervisory role.
The Insurance Directorate has been able to set up the fundamental rules from which its tasks emanate as well as turning its ambitions into reality. To that end, several regulations and instructions were shaped in line with the development in the insurance industry in international markets. The directorate continues its work to regulate and supervise the insurance sector to ensure an environment that is suitable for its development and enhancement of its role in the national economy. This can be achieved through:
- Setting detailed policies for the development and improvement of the insurance sector, in addition to preparing the regulations and instructions necessary to implement in cooperation with competent authorities.
- Providing an appropriate working environment for the development and growth of the insurance sector.
- Protecting the rights of clients and beneficiaries using insurance services.
- Promoting insurance awareness programs.
- Continuous development and improvement of the internal work system.
Continuous development and improvement of the internal work system in line with market developments. The year 2019 witnessed a number of developments in the insurance sector, as the professional certification program linked to the competency framework for the insurance sector was launched in cooperation with the Bahrain Institute of Banking and Finance BIBF, Chartered Insurance Institute CII and Life Office Management Association LOMA, based on the directions and the decisions of the PCMA’s Board of Directors based on the importance and necessity of strengthening and developing the technical capabilities of the Palestinian insurance sector in accordance with international best practices. On the other hand, PCMA has launched an awareness campaign targeting the insurance sector in Palestine titled "Insurance; Protection and Safety”; it’s a comprehensive awareness campaign for the Palestinian insurance sector, in line with the PCMA’s strategy to advance the Palestinian insurance sector, and in accordance with directions of the direct board of directors on the need to enhance confidence between citizens and providers Insurance services in Palestine, which spanned over seven months and covered all governorates in the West Bank and Gaza Strip.
Likewise, during the year 2019, all insurance companies were linked to the unified credit inquiry system with the Palestine Monetary Authority, and this comes as a culmination of the efforts made in encouraging companies to join the unified credit inquiry system issued by the PMA and benefit from the facilities and services that provided by this system to insurance companies, which contributes to enhancing its financial stability and safety, and enhancing its liquidity ratios.
By the end of 2019, the number of insurance companies licensed by PCMA reached 10 companies, and they are operating in various types of insurance. The insurance sector in Palestine achieved a growth during the year 2019 from its predecessor, reached up to about 8.3%. The total insurance portfolio reached 302.5 million dollars by the end of the year 2019, the insurance sector has witnessed a steady development in terms of the spread of insurance products in Palestine, where the penetration rate of insurance at the end of the year 201 (the total insurance portfolio attributed to the gross domestic product at current prices) reached 1.9%, and the insurance density, which indicates the individual's share of the total insurance portfolio at the end of the year 201 (the total insurance portfolio attributed to the gross domestic product at current prices) reached 1.9%, and the insurance density, which indicates the individual's share of the total insurance portfolio at the end of the year 201 was US was US dollars. dollars.