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Major Developments of 2024

 Key Developments 2024

The year 2024 witnessed a series of qualitative developments in the insurance sector in Palestine, resulting from continuous efforts to improve the regulatory and technological environment, enhance governance and transparency, and promoting innovation while responding to emerging challenges. The following are the most prominent of these developments:

  1. New Insurance Law: The draft of the insurance law was presented to the Council of Ministers for the first reading, and feedback was received from several parties including ministries, government institutions, the Palestinian Insurance Federation, and the Palestinian Road Accident Victims Compensation Fund. A series of workshops were held to discuss these comments, some of which were adopted, while explanations were provided for those not accepted. The agreed-upon comments were incorporated into the amended draft, with follow-up continuing with the Council of Ministers to complete the approval procedures.
  1. Promoting Innovation and Technology in the Insurance Sector: As part of the administration’s plan to provide a supportive technological environment, the administration participated in implementing the first phase of a cooperation agreement with the International Finance Corporation (IFC) aimed at developing a roadmap for Financial Technology (FinTech) and Insurance Technology (InsurTech). Meetings were also held with business accelerators to explore opportunities for supporting innovation and enhancing their capacities to establish specialized tracks in this field.
  1. Removing Legal Barriers to Innovation: The administration held meetings with insurance companies to discuss the PCMA’s orientations regarding electronic platforms and mechanisms for dealing with them. A meeting is currently being arranged with the company (E-SADAD) to facilitate electronic payment processes in the sector.
  1. Monitoring and Evaluating Electronic Service Platforms of Insurance Companies: Evaluation has been undertaken for a number of electronic platforms and innovations submitted by insurance companies for the digital delivery of their services. The no-objection letter for the vehicle pricing project using artificial intelligence was also renewed and addressed to Mr. Ahmad Kanaan. In addition, licensing procedures were followed up for the electronic platforms of the following insurance companies: Al-Mashreq, Palestine, Tamkeen, and Ahlia Group. Licensing procedures are currently being finalized for the platform of Al-Baraka Islamic Insurance Company.
  1. Strengthening Complaint Handling Mechanisms: As part of the development of the beneficiary protection system, the performance of the Complaints Department within the Insurance Directorate was evaluated, and recommendations were made to improve its effectiveness and to involve partner entities more broadly.
  1. Agricultural Insurance and Microinsurance: Specialized workshops were organized in partnership with the Ministry of Agriculture and Oxfam to encourage insurance companies to offer products targeted at marginalized groups, particularly in the fields of agricultural insurance and microinsurance.
  1. Development of the Compulsory Vehicle Insurance Pricing System: Work is being done to amend the vehicle insurance pricing system to shift to a risk-based pricing model, and recommendations have been made to complete the required actuarial study.
  2. Insurance Sector Environment Analysis: Recommendations were submitted to the Board of Directors of the PCMA based on the results of a market and enabling environment analysis study, with the aim of developing insurance policies in line with changes in the local market.
  1. Improving the Insurance Database: Work is underway to feed the unified information system with historical accident data and to develop a classification list of high-risk insured individuals.
  1. Cooperation with the Ministry of Labor: Work is underway to sign a memorandum of understanding with the Ministry of Labor regarding the implementation of the provisions of the Insurance Law related to workers’ insurance and workplace injuries, with the possibility of establishing electronic linkage between insurance companies and the Ministry to enhance transparency and compliance.
  1. Oversight and Financial Reporting: The administration continued its duties in reviewing financial statements and actuarial reports, updating risk registers, and issuing solvency certificates. A periodic statistical database was also developed, along with a risk-based supervision methodology. The presentation of financial data for insurance and reinsurance contracts was standardized, despite the economic challenges caused by the war in the Gaza Strip and the clearance crisis.
  1. Electronic Integration with the Ministry of Transport: Technical integration with the Ministry was completed to provide application programming interfaces (APIs) for insurance companies to query vehicle data.
  1. Field Supervision of Insurance Companies: A total of 100 supervisory visits were conducted at the headquarters and branches of insurance companies during 2024 to monitor compliance with laws and regulatory instructions.
  1. Complaints Follow-up: The Complaints Department received 88 complaints during the year, of which 76 were addressed and closed, while 11 complaints remained incomplete due to missing required documents.
  1. Granting, Refusal, and Renewal of Licenses for Insurance Companies, Agents, and Insurance Professionals: The Insurance Directorate renewed the licenses for 2024 for all insurance companies authorized by the PCMA, in addition to renewing licenses for insurance professionals registered in the Directorate’s records.

The PCMA also renewed the operating licenses of insurance companies for the year 2024, according to the details provided in the tables attached to this report.