New Insurance Law Coming Soon.. Will It Serve the Insured?

SadaNews - The Palestinian Economic Media Alliance (PEMA) held a meeting with Ammar Al-Akkr, Chairman of the Board of Directors of the Capital Market Authority, during which key issues related to the authority's work were discussed, especially concerning the insurance sector in Palestine.

Al-Akkr revealed during the meeting some details of the new insurance law expected to come into effect before the end of this year, to replace the existing law No. (20) of 2005.

Al-Akkr explained that the new law aims to bring about a qualitative shift in the insurance sector by adopting a pricing system based on risk assessment and the insured's record, instead of the uniform pricing system, which achieves greater fairness in determining insurance premiums.

The law also stipulates the formation of a committee to resolve insurance disputes composed of a judge, a representative of the authority, and another from insurance companies, aiming to expedite the resolution of compensation cases and disputes between parties. This is especially important given the backlog of cases in the courts due to the absence of a specialized judiciary, which harms the interests of policyholders and the insurance sector as well.

The Chairman pointed out that the law comes within a comprehensive vision to enhance the financial solvency of insurance companies and restore investor and consumer confidence, stressing the existence of a gradual plan to raise the capital of insurance companies over the next five years, ensuring these companies can meet their obligations and reduce their reliance on foreign reinsurance.

Al-Akkr confirmed that the authority is working on developing new insurance products that align with the interests of citizens, especially under current circumstances.

The discussion also touched on the condition the insurance sector suffers from, as 70% of the insurance share is for vehicles, which is something that needs to be reconsidered. We want to exert more effort for insurance to become a culture due to its importance in protecting rights and properties.

Al-Akkr emphasized that the authority has completed its final consultations on the draft law and submitted it to the Cabinet, expecting that the law will bring about a fundamental change in regulating the insurance market, balancing the rights of the insured and the stability of companies, and enhancing confidence in the insurance sector in Palestine.

During the law's discussion period, the authority sent the draft law to all relevant parties to obtain feedback and recommendations to keep pace with developments in the insurance industry and align with the interest of the citizen and the economy in general.

The Palestinian market includes 12 insurance companies with around 200 branches in the West Bank and Gaza Strip prior to the aggression. The total insurance premiums written by the end of 2024 amounted to approximately $384 million, while the total claims paid were around $260 million.

It is worth mentioning that the Palestinian Economic Media Alliance comprises several independent media institutions and economic journalists, aiming to improve the state of economic media and monitor and address the most important issues and challenges faced by the Palestinian economy.