Major Developments of 2025

Key Developments and Achievements During 2025

The year 2025 witnessed a series of qualitative developments in the insurance sector in Palestine, resulting from continued efforts to develop the regulatory and technological environment, enhance governance and transparency, promote innovation, and respond to emerging challenges. The most prominent of these developments were as follows:

1. Draft New Insurance Law: The draft new insurance law was presented to the Council of Ministers in its first reading. Several comments and observations were received from ministries and government institutions, as well as from the Palestinian Insurance Federation and the Palestinian Road Accident Victims Compensation Fund. Subsequently, a series of workshops was held with the relevant parties to discuss the comments received and reach consensus on some of them. The agreed comments were incorporated into the draft law, while explanations were provided for not adopting certain other comments. The agreed comments were included in the amended draft, with follow-up continuing with the Council of Ministers to complete the approval procedures.
2. Regulating Appointment Requirements at Insurance Companies: Decision No. (1) of 2025 was issued to determine the requirements for appointing senior executive management and key personnel at insurance companies. The decision aims to strengthen governance rules governing appointments within insurance companies.
3. Encouraging Electronic Payment of Insurance Premiums: Upon the recommendation of the PCMA, the Council of Ministers issued Decision No. (2) of 2025, which includes controls and criteria for granting an incentive discount in the payment of insurance premiums, in order to facilitate electronic payment processes in the insurance sector and grant incentive discounts in this regard.
4. Monitoring and Evaluating Electronic Service Platforms of Insurance Companies: The Insurance Directorate followed up on and evaluated electronic service platforms and innovations submitted by insurance companies for the digital delivery of their services. Approvals were granted to companies and entities that fulfilled the required legal conditions.
5. Developing the Motor Insurance Pricing System: The PCMA completed the preparation of a comprehensive actuarial study to develop a risk-based pricing model for the motor insurance line, addressing shortcomings in the current tariff and enhancing pricing fairness among policyholders. This included analyzing market data, identifying relevant risk factors, and developing a pricing model that links insurance premiums to actual risks. This contributes to strengthening underwriting discipline, limiting unsustainable pricing practices, and supporting the transition toward a more efficient and transparent insurance market.
6. Improving the Insurance Database: Work is underway to populate the Unified Inquiry System with historical accident data and to develop a classification list of high-risk policyholders.
7. Cooperation with the Ministry of Labor: A memorandum of understanding was signed with the Ministry of Labor regarding the implementation of the provisions of the Insurance Law related to workers’ insurance and occupational injuries. Work has also begun on electronic linkage between insurance companies and the Ministry to enhance transparency and compliance.
8. Regulating Underwriting Capacity in the Compulsory Vehicle Insurance Line: The PCMA prepared a regulatory framework to control underwriting limits in the motor insurance line, based on financial and technical indicators that reflect each company’s actual ability to assume risk. This measure aims to limit excessive concentration in this line, enhance the efficiency of risk distribution, and achieve more balanced competition among companies, thereby contributing to improving underwriting quality and enhancing the technical stability of the insurance market.
9. Strengthening the Supervisory Framework for Liquidity Management and Dividend Distribution: The PCMA worked on developing new regulatory controls to link the distribution of cash dividends to the actual liquidity levels of insurance companies. This measure aims to ensure that companies are able to meet their insurance obligations on time, prevent the distribution of unsustainable dividends, and enhance financial discipline and cash flow management, thereby preserving the rights of policyholders and supporting sector stability.
10. Oversight and Financial Reporting: The Insurance Directorate continued its duties in reviewing financial statements and actuarial reports, updating risk registers, and issuing solvency certificates.
11. Field Supervision of Insurance Market Participants: The Market Conduct Department carried out 84 field supervisory visits aimed at monitoring compliance with applicable laws and regulatory instructions and strengthening discipline in the insurance market. The supervision covered insurance companies, insurance brokers, insurance agents, medical expenses management companies, and insurance service providers, in order to examine the extent of compliance with the provisions of legislation in force.
12. Follow-up on Complaints: Complaints received from insured persons and beneficiaries of insurance services in the insurance sector were followed up with insurance companies in accordance with the provisions of legislation in force. A total of 121 complaints were received, all of which were handled.
13. Follow-up on Operating Licenses of Insurance Companies, Agents, and Insurance Professionals: During 2025, the Insurance Directorate renewed the licenses to practice of all licensed insurance companies, ensuring continuity of operations within the legal frameworks and reflecting compliance with professional standards and the strengthening of confidence in the insurance market. The licenses to practice insurance professions for persons registered in the PCMA’s records were also renewed in accordance with the conditions and instructions in force. As part of supporting market expansion, new licenses were granted to insurance professionals after they met the legal and technical requirements. These included individual insurance agents and corporate agents, loss adjusters, bancassurance officers, and actuaries, reflecting the PCMA’s commitment to qualifying personnel and ensuring the diversity of available skills. Conversely, the licenses of 16 professionals who did not meet the licensing requirements were cancelled, as part of continuous monitoring to ensure legal compliance and sound professional practices, thereby enhancing market integrity.

The insurance market in Palestine covers all major and specialized insurance lines, including motor, marine, aviation and transport, fire and allied perils, general accident, health insurance, life insurance, agricultural insurance, and microinsurance.

By the end of 2025, the total number of ancillary insurance professionals registered with the PCMA reached 344. This included individual insurance agents, insurance producers and corporate agents, insurance brokers and reinsurance brokers, actuaries, loss adjusters, medical expenses management companies, insurance investigators, and banks accredited to conduct bancassurance activities, reflecting the diversity of expertise and competencies in the sector.

The total number of insurance support professionals registered with the Authority by the end of 2025, including individual insurance agents, insurance producers and agents (of the Authority), insurance brokers and reinsurance brokers, actuaries, loss adjusters, medical expense management companies, investigators, and banks authorized to conduct bancassurance business, reached (344), reflecting the diversity of expertise and competencies in the sector.