Sector Overview

 

During the year 2018, the PCMA continued its efforts to address the situation of the insurance sector in order to achieve stability in the sector, and to enhance the effective supervision role of PCMA, and address long-standing problems. In the same context, PCMA efforts through the General Directorate of Insurance continued to focus on the adequacy of the technical reserves observed by the insurance companies that based on precise actuarial principles and to raise and strengthen the reserves to meet the obligations towards the policyholders by following up the corrective plans prepared for some companies. PCMA has adopted a risk-based supervisory approach that complies with the international standards and best practices of the International Association of Insurance Supervisors (IAIS), as recommended by World Bank experts.

In 2018, PCMA worked in cooperation with the Palestinian Monetary Authority PMA to link the economic sectors  which are supervised by the PCMA to the credit system, especially the insurance sector, this was a part of the Memorandum of Understanding signed between PCMA and PMA, and all obstacles related to this issue have been resolved. PCMA also began to deal with the insurance crisis of the motorcycles that emerged during the year 2018 by obligating the insurance companies not to refuse to insure any motorcycle according to the prices offered by the Palestinian Federation of insurance companies as acceptable price until the end of the actuarial study. PCMA also intervened in resolving the insurance crisis among the Medical Syndicate and the Union of Private and National Hospitals on one hand and the Federation of Insurance Companies on the other hand, by facilitating the dialogue and overcoming obstacles for both parties since the beginning of the crisis.

By the end of 2018, 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 rate of 9.4% in 2018. The total insurance portfolio reached 279.4 million dollars at the end of 2018. The insurance sector has witnessed a steady development in terms of the spread of insurance products in Palestine. At the end of 2018 the penetration rate reaches 1.9% (total insurance portfolio attributed to gross domestic product at current prices), and the insurance density reaches US 58.5 dollars, which refers to the per capita share of the total insurance portfolio by the end of 2018.