Israel Insurance Industry – Governance, Risk and Compliance

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The Israel insurance industry research report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report also gives insurers access to information on prevailing insurance regulations, statutory return requirements and policy practice in the market. It also includes the scope of non-admitted insurance in the country.

Israel Insurance Analysis by License Types

The key types of licenses issued in the Israel insurance industry are non-life insurance, life insurance, reinsurance, composite insurance and license for intermediaries. 

Life Insurance

Life insurance class includes Comprehensive life insurance, Pension insurance, and Mutual group life insurance. 

Non-Life Insurance

Non-life insurance class includes employers liability insurance, motor hull and liability insurance, aircraft insurance, including third-party liability, marine insurance, including third-party liability, insurance of freight in transit, third-party liability insurance and property insurance, including glass insurance among others. 

Composite

Composite insurers are permitted in Israel. However, an insurer authorized to carry life insurance business along with any other insurance business must maintain separate sets of accounts, hold separate assets to cover life insurance liabilities and must reinsure the life insurance business separately.

Reinsurance

Reinsurance is not considered a separate line of business in Israel, and insurance companies are permitted to carry out reinsurance transactions. In addition, exclusive reinsurance companies are permitted to operate in any reinsurance businesses in Israel, without obtaining a license from the CMISD. 

License for intermediaries

CMISD grants licenses to corporate agents and individual agents to carry out insurance intermediation activities. The Financial Services (Insurance) Law 1981 does not define or stipulate separate provisions for insurance brokers. CMISD does not grant different licenses for insurance brokers.

Key Legislations

The industry is supervised and regulated by the Capital Markets, Insurance and Savings Division (CMISD) of the MOF. The CMISD supervises the industry based on the Israel insurance law, regulations, circulars and instructions. Insurance Contract Law 1981, Financial Services (Insurance) Law 1981, Insurance Business Control Notice (Branches of Insurance) 5745−1985, Insurance Business Control Regulation (Minimum Equity Required of Insurer) 5758−1998 and Insurance Business Control Regulations (Particulars of Report) 5758−1998 are the other key pieces of legislation that govern the Israeli Insurance industry.

Key Bodies Overseeing the Israel Insurance Industry

The key bodies that oversee the Israel insurance industry are IAIS, RA, and Association of Life Insurance Companies of Israel Ltd. 

International Association of Insurance Supervisors (IAIS)

The IAIS, established in 1994, is a global, membership-driven organization that represents insurance regulators and supervisors of more than 200 jurisdictions in more than 140 countries. In addition to members, the association also includes 135 observers, representing industry associations, professional associations, insurers and reinsurers, consultants and international financial institutions.

Israel Insurance Association (RA)

The RA is a non-profit voluntary organization, registered with the Registrar of Societies. Any licensed general or marine insurer can join the association as a member. 

The Association of Life Insurance Companies of Israel Ltd

The Association of Life Insurance Companies of Israel established in 1957 is a voluntary association that is incorporated as a private company and registered with the Registrar of Companies. It is a non-profit organization. 

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Market Report Overview

Key license types Life Insurance, Non-Life Insurance, Reinsurance, Composite, and license for Intermediaries
Key bodies International Association of Insurance Supervisors (IAIS), Israel Insurance Association (RA),  The Association of Life Insurance Companies of Israel Ltd

Key Highlights

This report provides:

  • Details of the insurance regulatory framework in the Israel.
  • Details of the rules and regulations governing insurance products and insurance entities.
  • Lists and analysis of key trends and developments pertaining to the country’s insurance regulatory framework.
  • Analysis of the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • Details of taxation imposed on insurance products and insurance companies.
  • The Israeli insurance industry is regulated by the Capital Markets, Insurance and Savings Division of the Ministry of Finance.
  • Motor bodily injury insurance, oil pollution liability insurance for ships, health insurance and workmen’s compensation insurance are the key classes of compulsory insurance.
  • 100% FDI is permitted in the Israeli insurance industry.

Key Highlights

• The Israeli insurance industry is regulated by the Capital Markets, Insurance and Savings Division of the Ministry of Finance.

• 100% FDI is permitted in the Israeli insurance industry.

• Composite insurance is permitted in the Israeli insurance industry.

• Motor bodily injury insurance, oil pollution liability insurance for ships, health insurance and workmen’s compensation insurance are the key classes of compulsory insurance.

• Non-admitted insurance is not permitted in the Israeli insurance industry; however reinsurance business by a foreign insurer does not require a license.

Reasons to Buy

  • Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
  • Gain insights into the insurance regulatory framework in Israel.
  • Track the latest regulatory changes and expected changes impacting the Israel insurance industry.
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
  • Understand key regulations and market practices pertaining to various types of insurance products.


Table of Contents

Table of Contents

ISRAEL

Legislation Overview

Supervision and Control

Legislation

Compulsory Insurance

Non-Admitted Insurance Regulations

Company Registration and Operation

License

Foreign Direct Investment / Ownership

Minimum Capital Requirements

Solvency Margins

Reserve Requirements

Statutory Return Requirements

Fee Structure

Taxation

Tax on Insurance Premium

Corporate Income Tax

Corporate Capital Gains Tax

Value Added Tax

Legal System

Policy Practice

About GlobalData

Contact Us

Table

List of Tables

Israel – Corporate Tax Rates for the Financial Year 2021

Figures

Figure 1: Israel – Insurance Supervision and Control at Various Levels

Figure 2: Israel – Insurance Regulatory Frameworks for Company Registration and Operation

Frequently asked questions

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