Israel's small but dynamic and well-developed insurance sector will enjoy robust growththrough the forecast period, with demand for insurance lines supported by a strong domestic economytypified by low unemployment, rising income levels and robust consumer confidence. Positive demographictrends, including a growing retirement-age population will be an additional driver of growth, with thebiggest impact expected to be seen in the country's life and health and personal accident insurancesegments. A competitive operating environment, occupied by a small number of well-entrenched localbrands, will restrict access to the market for new entrants, with investments and partnerships with existingdomestic providers likely to provide the easiest method of access for overseas investors.
Key Updates And Forecasts
In September 2017, Israeli conglomerate IDB Development Corp announced the sale of the group's44.9% stake in leading domestic insurer, Clal, to Hong Kong investment group, Huabang FinancialHoldings. IDB's decision to invest its stake follows government legislation prohibiting holdingcompanies from owning both financial and non-financial businesses. On Huabang's part, the moveillustrated the growing international demand for access to Israel's fast-growing insurance market.