Insurance laws Palestine
Palestine's insurance sector is regulated by the Palestine Capital Market Authority (PCMA), established under Law No. (13) of 2004. The PCMA oversees the insurance industry in accordance with Insurance Law No. (20) of 2005, which provides the legal framework for insurance activities in Palestine. The PCMA's role includes licensing insurance companies, enforcing compliance with regulations, and protecting the rights of policyholders.
📜 Key Legislation
Insurance Law No. (20) of 2005:This law governs the conduct of insurance business in Palestine, outlining provisions related to licensing, capital requirements, solvency, and operational conduct of insurance companies
Council of Ministers Decrees:Several decrees have been issued to regulate specific aspects of the insurance sector, including
Decree No. (2) of 2008: Regulation of setting the level of fees or tariffs for vehicle and workers' insurance
Decree No. (130) of 2007: Regulation of granting licenses to insurance companies
🏢 Regulatory Oversight
The PCMA is responsible fo:
Licensing Issuing licenses to insurance and reinsurance companies operating in Palestin.
Supervision Monitoring the activities of insurance companies to ensure compliance with regulatory standard.
Consumer Protection Safeguarding the interests of policyholders and beneficiarie.
Market Development Promoting the growth and development of the insurance industr.
Policy Advisory Providing expert advice to the government on insurance-related matter.
📊 Market Structure
*Number of Licensed Insurers: As of 2025, there are 12 licensed insurance companies in Palestie.
*Insurance Penetration: The insurance penetration rate stands at 2.07%, indicating the proportion of the population covered by insurane.
*Insurance Density: Insurance density, measured as premiums per capita, is $73.8.
🔄 Recent Developments
*Drafting of New Insurance Law: The PCMA has drafted a new insurance law to address current market challenges. The proposed law includes provisions to raise the minimum capital requirements for insurance companies and encourages mergers to enhance financial stabilty.
*Risk-Based Supervision: The PCMA has implemented a risk-based supervision methodology, aligning with the Insurance Core Principles issued by the International Association of Insurance Supervisors (IAIS). This approach aims to enhance the regulatory framework and ensure the soundness of the insurance secor.
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