POL I CY The Israeli Insurance, Pension & Finance Newspaper 5 Special edition 2022 The Israeli insurance market has always tended to buy more reinsurance relative to other developed insurance markets around the world. There are many reasons for this – the small size of the Israeli market, the higher level of risks than in other countries, the fast growth of the Israeli economy and others. The Israeli insurance companies been able to generate strong connections with reinsurers, which over the years have generated a high level of profitability for both the Israeli insurers as well as for the reinsurers. This phenomenon is expected to grow in the coming years. Two reforms which are currently going into effect – Solvency 2 and IFRS 17, are expected to drive the insurance companies even more into the arms of the reinsurers, from capital management and accounting policy considerations. Another phenomenon – the entry of new insurance companies into the Israeli market – Wesure and Libra, is further increasing the penetration of reinsurance. Similarly, the insurance sector has seen constant growth in recent years – the number of vehicles and homes is growing, business activity is expanding, health insurance penetration rates are increasing and the entire Israeli economy is reaping the fruits of the exit from Corona. All of this is being accompanied by the thriving of the digital industry, which has been felt by the insurance companies.Theinsurancecompanies are adopting technologies in all areas – underwriting, marketing, sales, operations, risk management – and are improving their work processes and their profitability. We are convinced that the reinsurers will likewise feel this – both the growth and the improvement in profitability of the Israeli insurance sector. In memory of Ofer Eliahu Ofer Eliahu, former Chairman of the Insurance Companies Association, Migdal CEO and son of its controlling shareholder, Shlomo Eliahu, suddenly passed away just over two months ago. Ofer’s passing, at the age of 64, came as a shock to everyone in the sector. This edition is dedicated to Ofer’s memory (see the article in his memory on pages 6-7). By Ori Lavi-Pelleg Editor In-Chief Chief Editor: Arie Lavi • Editor: Ori Lavi-Pelleg • Translation: Jonathan Marcus • Graphic Design: Ofek studio Publisher: Economic Communication, Ltd. •Mail: news@polisa.news • Tel. 972-3-5407884 • Fax. 972-3-5493622 • P.O.B23622, Tel Aviv 6123601 Premium Reinsurance is deepening its presence in the Israeli insurance market
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