Israel Life & Non-Life Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | < 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Israel Life & Non-Life Insurance Market Analysis
The global spread of COVID-19 in 2020 has created major challenges around the world, with individuals at risk of being infected by a contagious and deadly virus and many businesses shut down for public health purposes. This global health and economic crisis are also set to have an impact on insurance companies. They are likely to face charges in the demand for insurance policies and claims experience as well as impacts on the value of the assets that they hold to meet their obligations to policyholders.
Israeli insurance regulator has increased insurance product transparency, the insurance regulator has issued various rules and circulars, under which insurers must disclose monthly information regarding insurance programs, exclusions, limitations, and any updates to rates. The regulator may find an insurer that breaches these rules, even as much as USD 1 million. To increase competition between insurers, the regulator significantly reduced the capital requirement for digital insurers. The regulator aims to lower the requirement from digital insurers in various technical aspects which will enable them to operate more economically and efficiently.
The Israeli insurance market will continue to be very competitive, dictating a soft market, especially in personal lines insurance. It is expected that the high level of competition and developments in technology will lead to creative new products in the market and an increase in sales of direct insurance. Insurtech is very developed in Israel. Israeli insurance companies are looking at ways to transform parts of their activities into digital formats, such as the sale of policies, underwriting information, and handling of claims, in personal insurance. As a result of the growing competition, digital search engines compare terms and costs of insurance offered by competing insurance companies, to present tools to the consumer to find the most suitable insurance.
Israel Life & Non-Life Insurance Market Trends
This section covers the major market trends shaping the Israel Life & Non-Life Insurance Market according to our research experts:
Growing Fintech Funding in Israel
Israel's fintech (financial tech) sector saw a significant funding boom in 2021, with investments in fintech startups and companies reaching $4.5 billion over the year, according to a report published this week by Israeli investment firm Viola Group. That figure marked a 136% increase from 2020, which saw $1.9 billion in funding, according to the study.
Funding for fintech startups made up 17% of the overall investments in Israeli tech companies, the highest figure in six years, with, mega-rounds single investments of USD 100 million or more fueling the lion's share of growth in the fintech space. Mega rounds amounted to nearly USD 3 billion of the overall funding total in 2021.
Companies that raised significant funding in 2021 included Melio, the developer of a payments platform geared toward small and medium-sized US businesses, with a Series D round of USD 250 million at a valuation of $4 billion; Tipalti, a developer of payments and compliance tech platform with a USD 270 million investment; and business management software firm HoneyBook with a USD 250 million investment in late 2021 preceded by a USD 155 million investment earlier in the year 2022.
In addition, 17% of all Israeli unicorn private companies valued at USD 1 billion or more are fintech or insurtech (insurance tech) companies. (Insurtech is often a fintech sub-sector). In addition to Melio, Honeybook, and Tipalti, among such unicorns are Rapid, which facilitates multi-currency payments; Fundbox, a financial services and tools company that recently raised USD 100 million; and Next Insurance, a Silicon Valley-based insurance startup founded by Israeli entrepreneurs that use machine learning to provide individualized policies to customers.
In the public markets space, 23% of all IPO mergers for Israeli companies in 2020 and 2021 combined were fintech companies. These include Payoneer, a developer of payment processing technologies, Riskified, fraud prevention for an e-commerce firm that went public on the New York Stock Exchange last summer, and insurance companies Hippo and Lemonade.
Increase in GDP Per Capita
GDP per capita is a very important indicator of the economic strength of a country and a positive change is an indicator of economic growth. Per capita shows the country's affordability. The per capita income of the country has increased in recent years and is expected to continue. An increase in the GDP per capita can boost the insurance industry.
Before the onset of COVID-19, Israel's economy had grown continuously for the previous 15 years, averaging around 3.5 % GDP growth annually. During this time, Israel's GDP per capita rose steadily. However, the cost of living has also risen substantially, limiting advances in Israel's living standards. COVID-19 pushed Israel's unemployment rate above 20 % in 2020 (including those on leave without pay). In November 2020, The Economist projected that Israel's real GDP growth rate would be -5.2 % in 2020 and 2.9 % in 2021.
Israel Life & Non-Life Insurance Industry Overview
The Israel Life & Non-Life Insurance Market is a highly concentrated market dominated by five composite insurance groups. Key players in the market are leveraging partnerships, acquisitions, and mergers to capture the market share. The report covers the major players operating in Israel's life and non-life insurance market. Some of the major players in the market include Harel Insurance Investments & Finance Services, Migdal Holdings, The Phoenix, Menora Mivtachim, and Clal Insurance Enterprises.
Israel Life & Non-Life Insurance Market Leaders
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Harel Insurance Investments & Finance Services
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The Phoenix
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Menora Mivtachim
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Clal Insurance Enterprises
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Direct Insurance
*Disclaimer: Major Players sorted in no particular order
Israel Life & Non-Life Insurance Market News
- in 2021, The Phoenix offers a mortgage insurance policy that combines life insurance and property insurance. The program is designed for all homebuyers who must prepare mortgage insurance as a requirement for receiving a loan from the lending bank and who are interested in ensuring their family's financial stability if the event that one of the breadwinners passes away if the event that the apartment is damaged.
- In 2021, Mivtach Simon is a corporation licensed as a pension insurance agency under the full ownership of Migdal Insurance Company Ltd. The company provides services in the management of pension, insurance, and financial plans, as well as in other fields, Mivtach Simon, which works with most of the insurance companies and pension funds in Israel, handles an annual billing volume of about USD 4 billion and provides services to some 220,000 insured clients and 6000 employers, organizations and companies.
Israel Life & Non-Life Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Defination
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Industry Value Chain Analysis
4.6 Insights into Latest Technological Innovations and Recent Trends in the Market
4.7 Insights on Government Regulations in the Industry
4.8 Porters Five Force Analysis
4.8.1 Threat of New Entrants
4.8.2 Bargaining Power of Buyers
4.8.3 Bargaining Power of Suppliers
4.8.4 Threat of Substitutes
4.8.5 Intensity of Competitive Rivalry
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Insurance Type
5.1.1 Life Insurance
5.1.1.1 Individual
5.1.1.2 Group
5.1.2 Non-Life insurance
5.1.2.1 Home
5.1.2.2 Motor
5.1.2.3 Others
5.2 By Channel Distribution
5.2.1 Direct
5.2.2 Agency
5.2.3 Banks
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Harel Insurance Investments & Finance Services
6.2.2 The Phoenix
6.2.3 Menora Mivtachim
6.2.4 Clal Insurance Enterprises
6.2.5 Direct Insurance
6.2.6 Hachshara Insurance Company
6.2.7 Migdal Holdings
6.2.8 Ayalon Holdings
6.2.9 Shlomo Insurance Company
6.2.10 Shirbit
6.2.11 Bituach Haklai*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Israel Life & Non-Life Insurance Industry Segmentation
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. The Israel Life & Non-Life Insurance Market is segmented by Insurance Type (Life Insurance and Non-Life Insurance) and Distribution channel (Direct, Agency, Banks, and Other Distribution Channels).
| By Insurance Type | |||||
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| By Channel Distribution | |
| Direct | |
| Agency | |
| Banks | |
| Other Distribution Channels |
Israel Life & Non-Life Insurance Market Research FAQs
What is the current Israel Life & Non-Life Insurance Market size?
The Israel Life & Non-Life Insurance Market is projected to register a CAGR of less than 5% during the forecast period (2024-2029)
Who are the key players in Israel Life & Non-Life Insurance Market?
Harel Insurance Investments & Finance Services, The Phoenix, Menora Mivtachim, Clal Insurance Enterprises and Direct Insurance are the major companies operating in the Israel Life & Non-Life Insurance Market.
What years does this Israel Life & Non-Life Insurance Market cover?
The report covers the Israel Life & Non-Life Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Israel Life & Non-Life Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Israel Life & Non-Life Insurance Industry Report
Statistics for the 2024 Israel Life & Non-Life Insurance market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Israel Life & Non-Life Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Israel Life & Non-Life Insurance Market Report Snapshots
