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
1Health insurance premiums reached 20.1 billion ILS in 2023, +8.2%.
Verified2Supplementary health policies: 4.8 million in force, 95% coverage.
Verified3Hospitalization coverage claims: 7.2 billion ILS paid in 2022.
Verified4Dental insurance penetration: 65% of population.
Directional5Long-term care insurance policies: 1.2 million, premiums 4.5 billion ILS.
Single source6Maternity benefits claims: 1.1 billion ILS annually.
Verified7Alternative medicine coverage: included in 40% of policies.
Verified8Health claims ratio: 78.5% in 2022.
Verified9Group health policies: 55% of total health premiums.
Directional10IVF treatment coverage: 85% of supplementary policies.
Single source11Chronic disease management premiums: 2.3 billion ILS.
Verified12Telemedicine integration: 60% of health insurers offering.
Verified13Health insurance for elderly: 28% premium growth.
Verified14Cancelled health policies: 2.1% rate in 2022.
Directional15Average health premium per person: 3,450 ILS yearly.
Single source16Private health funds integration: 12 billion ILS assets.
Verified17Pandemic-related health claims: peaked at 1.5 billion ILS Q2 2022.
VerifiedHealth 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
1Total life insurance premiums were 32.1 billion ILS in 2023, growing 8.9%.
Verified2Annuity policies issued: 45,000 in 2022, premiums 15.4 billion ILS.
Verified3Savings and investment-linked policies: 28% market share in life.
Verified4Term life coverage penetration: 25% of population aged 25-64.
Directional5Average life premium per policy: 4,200 ILS annually in 2022.
Single source6Critical illness riders added to 15% of life policies in 2023.
Verified7Pension-linked insurance assets: 850 billion ILS end-2022.
Verified8New life policies sold: 120,000 in 2022.
Verified9Lapse rate for life policies: 4.2% in 2022.
Directional10Group life insurance premiums: 6.8 billion ILS, 21% of life total.
Single source11Life insurance claims paid: 12.3 billion ILS in 2022.
Verified12Death claims ratio: 0.85% of sum assured in 2022.
Verified13Endowment policies: 10% of life portfolio, 3.2 billion ILS premiums.
Verified14Whole life policies in force: 2.1 million in 2022.
Directional15Life insurance ROI for policyholders: 3.8% average in 2022.
Single source16Universal life products growth: 14% in premiums 2022.
Verified17Female policyholders in life: 52% of total in 2022.
Verified18Life insurance digital adoption: 35% of sales online.
Verified19Projected life market CAGR 7.5% to 2028.
DirectionalLife 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
1In 2022, the total direct premiums written in the Israeli insurance market reached 92.4 billion ILS, marking a 7.2% increase from 2021.
Verified2The Israeli insurance industry's gross written premiums grew by 8.1% year-on-year to 105.3 billion ILS in 2023.
Verified3Non-life insurance segment accounted for 68% of total premiums in Israel in 2022, totaling 62.9 billion ILS.
Verified4Life insurance premiums in Israel surged 12.5% to 29.5 billion ILS in 2022.
Directional5The penetration rate of insurance in Israel stood at 5.8% of GDP in 2022.
Single source6Israeli insurance density (premiums per capita) was 9,850 ILS in 2022.
Verified7Total assets under management by Israeli insurers reached 1.2 trillion ILS by end-2022.
Verified8The market is projected to grow at a CAGR of 6.2% from 2023-2027.
Verified9Health insurance premiums grew 9.3% to 18.7 billion ILS in 2022.
Directional10Motor insurance dominated non-life with 28.4 billion ILS in premiums in 2022.
Single source11Property insurance premiums totaled 12.6 billion ILS, up 5.8% in 2022.
Verified12Number of insurers operating in Israel was 28 in 2022.
Verified13Market concentration: Top 5 insurers hold 75% of premiums.
Verified14Digital insurance sales grew 22% in 2022.
Directional15Cybersecurity insurance premiums up 35% to 1.2 billion ILS.
Single source16Total premiums in Q1 2023: 24.1 billion ILS, +6.4% YoY.
Verified17Insurtech startups in Israel numbered 150+ in 2023.
Verified18Insurance exports from Israel reached 2.5 billion ILS in 2022.
Verified19Reinsurance ceded by Israeli insurers: 15.2 billion ILS in 2022.
Directional20Market value forecasted at 120 billion ILS by 2025.
Single sourceMarket 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
1Non-life premiums totaled 70.2 billion ILS in 2023, up 7.8%.
Verified2Motor third-party liability premiums: 18.5 billion ILS in 2022.
Verified3Comprehensive motor premiums: 9.9 billion ILS, 35% growth post-COVID.
Verified4Property damage claims frequency: 2.1 per 100 policies.
Directional5Liability insurance premiums: 4.7 billion ILS in 2022.
Single source6Employers' liability coverage: 98% penetration in businesses.
Verified7Fire and allied perils premiums: 8.2 billion ILS.
Verified8Cargo insurance growth: 11% to 1.8 billion ILS.
Verified9Non-life policies in force: 15.2 million in 2022.
Directional10Accident and health non-life: 5.4 billion ILS premiums.
Single source11Marine hull premiums: 0.9 billion ILS, stable.
Verified12Credit and surety bonds: 2.1 billion ILS.
Verified13Non-life loss ratio averaged 72% in 2022.
Verified14Aviation insurance premiums: 0.4 billion ILS.
Directional15Engineering insurance: 1.2 billion ILS premiums.
Single source16Miscellaneous non-life: 3.5 billion ILS.
VerifiedNon-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
1Total policyholders in Israel: 8.5 million individuals.
Verified2Motor policies in force: 4.2 million vehicles insured.
Verified3Homeowners insurance penetration: 72% of households.
Verified4Life insurance coverage: 45% of adults have policies.
Directional5Health supplementary: 92% of Israelis covered.
Single source6Pension plans active: 6.1 million accounts.
Verified7Commercial policies: 450,000 businesses insured.
Verified8Underinsured population: 8% lack basic coverage.
Verified9Digital policy issuance: 40% of new policies online.
Directional10Multi-policy households: 65% have 3+ insurances.
Single source11Youth penetration (18-24): 22% for life insurance.
Verified12Elderly (65+) health coverage: 98%.
Verified13Rural vs urban penetration gap: 15% lower in periphery.
Verified14New policy sales: 1.8 million in 2022.
Directional15Renewal rate: 88% for non-life policies.
Single source16Agents vs direct sales: 55% agent-mediated.
VerifiedPolicyholders 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%.
Regulatory and Company Data
1Minimum capital requirement for insurers: 120 million ILS.
Verified2Solvency ratio average: 180% across insurers in 2022.
Verified3Number of licensed brokers: 2,500 in 2023.
Verified4Investment regulations: 75% in approved assets.
Directional5Profit after tax: 8.2 billion ILS for industry in 2022.
Single source6ROE for top insurers: 12.5% average.
Verified7Regulatory fines imposed: 25 million ILS in 2022.
Verified8ESG reporting mandatory since 2023 for large insurers.
Verified9Data protection compliance: 100% GDPR-aligned.
Directional10Market conduct supervision complaints: 18,000 handled.
Single source11Top insurer Clal: 22% market share.
Verified12Harel Insurance profits: 2.1 billion ILS.
Verified13Phoenix Holdings life assets: 300 billion ILS.
Verified14Insurtech regulatory sandbox participants: 12 companies.
DirectionalRegulatory 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
1Mergers approved: 3 in 2022 by CMA., category: Regulatory and Company Data
VerifiedRegulatory 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.
Sources & References
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