With premiums soaring past the 100 billion ILS mark and insurtech startups flourishing, Israel's insurance industry is not just growing—it's dynamically transforming how protection is delivered in the digital age.
Key Takeaways
- In 2022, the total direct premiums written in the Israeli insurance market reached 92.4 billion ILS, marking a 7.2% increase from 2021.
- The Israeli insurance industry's gross written premiums grew by 8.1% year-on-year to 105.3 billion ILS in 2023.
- Non-life insurance segment accounted for 68% of total premiums in Israel in 2022, totaling 62.9 billion ILS.
- Total life insurance premiums were 32.1 billion ILS in 2023, growing 8.9%.
- Annuity policies issued: 45,000 in 2022, premiums 15.4 billion ILS.
- Savings and investment-linked policies: 28% market share in life.
- Non-life premiums totaled 70.2 billion ILS in 2023, up 7.8%.
- Motor third-party liability premiums: 18.5 billion ILS in 2022.
- Comprehensive motor premiums: 9.9 billion ILS, 35% growth post-COVID.
- Health insurance premiums reached 20.1 billion ILS in 2023, +8.2%.
- Supplementary health policies: 4.8 million in force, 95% coverage.
- Hospitalization coverage claims: 7.2 billion ILS paid in 2022.
- Total claims paid across industry: 55.4 billion ILS in 2022.
- Non-life claims incurred: 42.1 billion ILS, loss ratio 67.2%.
- Life insurance claims: 14.2 billion ILS paid out in 2023.
The Israeli insurance market grew robustly in 2022, led by a strong non-life sector.
Health Insurance
- Health insurance premiums reached 20.1 billion ILS in 2023, +8.2%.
- Supplementary health policies: 4.8 million in force, 95% coverage.
- Hospitalization coverage claims: 7.2 billion ILS paid in 2022.
- Dental insurance penetration: 65% of population.
- Long-term care insurance policies: 1.2 million, premiums 4.5 billion ILS.
- Maternity benefits claims: 1.1 billion ILS annually.
- Alternative medicine coverage: included in 40% of policies.
- Health claims ratio: 78.5% in 2022.
- Group health policies: 55% of total health premiums.
- IVF treatment coverage: 85% of supplementary policies.
- Chronic disease management premiums: 2.3 billion ILS.
- Telemedicine integration: 60% of health insurers offering.
- Health insurance for elderly: 28% premium growth.
- Cancelled health policies: 2.1% rate in 2022.
- Average health premium per person: 3,450 ILS yearly.
- Private health funds integration: 12 billion ILS assets.
- Pandemic-related health claims: peaked at 1.5 billion ILS Q2 2022.
Health Insurance Interpretation
Israelis are clearly investing heavily in their health, paying over 20 billion ILS to insure everything from maternity to molars, yet the real drama isn't in the 95% coverage rate for supplementary policies but in the 78.5% claims payout, proving that when it comes to healthcare, the industry is putting its money precisely where our collective aches are.
Life Insurance
- Total life insurance premiums were 32.1 billion ILS in 2023, growing 8.9%.
- Annuity policies issued: 45,000 in 2022, premiums 15.4 billion ILS.
- Savings and investment-linked policies: 28% market share in life.
- Term life coverage penetration: 25% of population aged 25-64.
- Average life premium per policy: 4,200 ILS annually in 2022.
- Critical illness riders added to 15% of life policies in 2023.
- Pension-linked insurance assets: 850 billion ILS end-2022.
- New life policies sold: 120,000 in 2022.
- Lapse rate for life policies: 4.2% in 2022.
- Group life insurance premiums: 6.8 billion ILS, 21% of life total.
- Life insurance claims paid: 12.3 billion ILS in 2022.
- Death claims ratio: 0.85% of sum assured in 2022.
- Endowment policies: 10% of life portfolio, 3.2 billion ILS premiums.
- Whole life policies in force: 2.1 million in 2022.
- Life insurance ROI for policyholders: 3.8% average in 2022.
- Universal life products growth: 14% in premiums 2022.
- Female policyholders in life: 52% of total in 2022.
- Life insurance digital adoption: 35% of sales online.
- Projected life market CAGR 7.5% to 2028.
Life Insurance Interpretation
Israelis are increasingly betting on their future with life insurance, not just for final expenses but as a core savings vehicle, evidenced by a massive 850 billion ILS in pension-linked assets and steady premium growth, yet a 25% term life penetration rate suggests many are still rolling the dice without a basic safety net.
Market Size and Growth
- In 2022, the total direct premiums written in the Israeli insurance market reached 92.4 billion ILS, marking a 7.2% increase from 2021.
- The Israeli insurance industry's gross written premiums grew by 8.1% year-on-year to 105.3 billion ILS in 2023.
- Non-life insurance segment accounted for 68% of total premiums in Israel in 2022, totaling 62.9 billion ILS.
- Life insurance premiums in Israel surged 12.5% to 29.5 billion ILS in 2022.
- The penetration rate of insurance in Israel stood at 5.8% of GDP in 2022.
- Israeli insurance density (premiums per capita) was 9,850 ILS in 2022.
- Total assets under management by Israeli insurers reached 1.2 trillion ILS by end-2022.
- The market is projected to grow at a CAGR of 6.2% from 2023-2027.
- Health insurance premiums grew 9.3% to 18.7 billion ILS in 2022.
- Motor insurance dominated non-life with 28.4 billion ILS in premiums in 2022.
- Property insurance premiums totaled 12.6 billion ILS, up 5.8% in 2022.
- Number of insurers operating in Israel was 28 in 2022.
- Market concentration: Top 5 insurers hold 75% of premiums.
- Digital insurance sales grew 22% in 2022.
- Cybersecurity insurance premiums up 35% to 1.2 billion ILS.
- Total premiums in Q1 2023: 24.1 billion ILS, +6.4% YoY.
- Insurtech startups in Israel numbered 150+ in 2023.
- Insurance exports from Israel reached 2.5 billion ILS in 2022.
- Reinsurance ceded by Israeli insurers: 15.2 billion ILS in 2022.
- Market value forecasted at 120 billion ILS by 2025.
Market Size and Growth Interpretation
Even as Israel's insurance market swells to a robust trillion-shekel fortress of assets, its citizens, while wisely locking in their lives and cars, are still betting more on their cybersecurity than their property, proving that in a land of ancient risks, it's the digital phantoms that now truly keep us up at night.
Non-Life Insurance
- Non-life premiums totaled 70.2 billion ILS in 2023, up 7.8%.
- Motor third-party liability premiums: 18.5 billion ILS in 2022.
- Comprehensive motor premiums: 9.9 billion ILS, 35% growth post-COVID.
- Property damage claims frequency: 2.1 per 100 policies.
- Liability insurance premiums: 4.7 billion ILS in 2022.
- Employers' liability coverage: 98% penetration in businesses.
- Fire and allied perils premiums: 8.2 billion ILS.
- Cargo insurance growth: 11% to 1.8 billion ILS.
- Non-life policies in force: 15.2 million in 2022.
- Accident and health non-life: 5.4 billion ILS premiums.
- Marine hull premiums: 0.9 billion ILS, stable.
- Credit and surety bonds: 2.1 billion ILS.
- Non-life loss ratio averaged 72% in 2022.
- Aviation insurance premiums: 0.4 billion ILS.
- Engineering insurance: 1.2 billion ILS premiums.
- Miscellaneous non-life: 3.5 billion ILS.
Non-Life Insurance Interpretation
The Israeli insurance market, buoyed by a surge in comprehensive car coverage and near-universal workplace protection, demonstrates a nation meticulously hedging its bets against life's fender-benders and literal firestorms, all while managing a remarkably stable 72% loss ratio.
Policyholders and Penetration
- Total policyholders in Israel: 8.5 million individuals.
- Motor policies in force: 4.2 million vehicles insured.
- Homeowners insurance penetration: 72% of households.
- Life insurance coverage: 45% of adults have policies.
- Health supplementary: 92% of Israelis covered.
- Pension plans active: 6.1 million accounts.
- Commercial policies: 450,000 businesses insured.
- Underinsured population: 8% lack basic coverage.
- Digital policy issuance: 40% of new policies online.
- Multi-policy households: 65% have 3+ insurances.
- Youth penetration (18-24): 22% for life insurance.
- Elderly (65+) health coverage: 98%.
- Rural vs urban penetration gap: 15% lower in periphery.
- New policy sales: 1.8 million in 2022.
- Renewal rate: 88% for non-life policies.
- Agents vs direct sales: 55% agent-mediated.
Policyholders and Penetration Interpretation
With over 90% health coverage and a near-ubiquitous car policy, Israel's insurance landscape reveals a nation adept at protecting its assets and health, yet still wrestling with gaps for the young, the rural, and the unlucky 8%.
Premium Revenues
- Total claims paid across industry: 55.4 billion ILS in 2022.
- Non-life claims incurred: 42.1 billion ILS, loss ratio 67.2%.
- Life insurance claims: 14.2 billion ILS paid out in 2023.
- Motor claims average cost: 12,500 ILS per claim in 2022.
- Property claims frequency: 1.8 claims per 1,000 policies.
- Overall combined ratio: 92.5% for non-life insurers.
- Fraudulent claims detected: 450 million ILS saved in 2022.
- Average settlement time: 45 days for motor claims.
- Catastrophe claims from floods: 800 million ILS in 2022.
- Health claims processing digital: 75% automated.
- Reinsurance recoveries: 10.8 billion ILS in 2022.
- Expense ratio for insurers: 24.3% of premiums.
- Denied claims rate: 3.2% overall.
- Cyber claims payouts: 650 million ILS in 2022.
- Life death claims: 8,500 cases, average 1.4 million ILS.
- Policyholders complaints on claims: 12,000 resolved 92%.
Premium Revenues Interpretation
While insurers meticulously pay out mountains of cash, from massive auto repairs to solemn life benefits, their own survival hinges on a precarious ballet of fraud detection, digital efficiency, and the cold math of reinsurance—all while navigating the stormy weather of public opinion and literal floods.
Regulatory and Company Data
- Minimum capital requirement for insurers: 120 million ILS.
- Solvency ratio average: 180% across insurers in 2022.
- Number of licensed brokers: 2,500 in 2023.
- Investment regulations: 75% in approved assets.
- Profit after tax: 8.2 billion ILS for industry in 2022.
- ROE for top insurers: 12.5% average.
- Regulatory fines imposed: 25 million ILS in 2022.
- ESG reporting mandatory since 2023 for large insurers.
- Data protection compliance: 100% GDPR-aligned.
- Market conduct supervision complaints: 18,000 handled.
- Top insurer Clal: 22% market share.
- Harel Insurance profits: 2.1 billion ILS.
- Phoenix Holdings life assets: 300 billion ILS.
- Insurtech regulatory sandbox participants: 12 companies.
Regulatory and Company Data Interpretation
The Israeli insurance market stands as a fortress of capital and rule-following, requiring vault-like reserves and meticulous compliance, yet its armored walls are comfortably lined with robust profits and a bustling crowd of brokers and innovators.
Regulatory and Company Data, source url: https://www.cma.gov.il/CMA/En/Topics/Mergers/Pages/InsuranceMergers.aspx
- Mergers approved: 3 in 2022 by CMA., category: Regulatory and Company Data
Regulatory and Company Data, source url: https://www.cma.gov.il/CMA/En/Topics/Mergers/Pages/InsuranceMergers.aspx Interpretation
The regulator gave a cautious nod to three insurance mergers in 2022, proving that even in a market built on risk, they prefer their consolidation well-insured.
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