Capital Market Authority: We have introduced significant amendments to the new insurance law in response to numerous proposals

Exclusive to "SadaNews": The preparation of the new insurance law by the Capital Market Authority came in response to an urgent need to address the legal and regulatory gaps in the currently effective law (No. 20 of 2005), which have become a real obstacle to the development of the insurance sector in Palestine and prevent it from keeping pace with international standards.

Amjad Qabeh, Director General of the General Administration of Insurance at the Authority, told "SadaNews" that the current law suffers from several gaps, including: conflicts in supervisory powers, lack of compatibility with other relevant legislations, a clear absence of governance and disclosure standards, and a lack of proper organization for modern types of insurance such as cooperative and agricultural insurance, in addition to ambiguity in the procedures related to the liquidation of companies and their exit from the market.

Regarding the fundamental differences between the current and new laws, Qabeh said, "The new law represents a qualitative leap in terms of structure and content, as it separates supervisory and regulatory tasks from the provisions of the insurance contract, and enhances governance and transparency according to international standards such as those adopted by the International Association of Insurance Supervisors (IAIS). It also prepares a developed legal environment that contributes to the development of insurance products, improves the consumer experience, and attracts investments to the Palestinian insurance market."

The most important features of the new law can be summarized as follows:

First: Organizing the liquidation of companies, establishing a special fund to handle the liquidation of insurance companies that exit the market, preserving the rights of policyholders and beneficiaries.

Second: Strengthening governance, enforcing qualifications and standards for owners and managers of companies, activating internal audit and risk committees, while granting the authority the power to dismiss management when necessary.

Thirdly: Fairness in compensation, adopting new mechanisms and standards for calculating compensations in a manner that considers the specifics of each insurance case, which reduces gaps and enhances trust.

Fourth: Organizing cooperative insurance, including a special section to regulate cooperative insurance according to Islamic law, and defining the relationship between policyholders and companies.

Fifth: Dispute resolution, establishing a specialized committee to settle insurance disputes in fair and rapid ways.

In response to a question from "SadaNews" about the reasons behind insurance companies' objections to the new law and how to address disagreements with the Union of Insurance Companies, Qabeh pointed out that some insurance companies objected to several provisions of the new insurance law draft, notably those concerning the future of the Palestinian Union of Insurance Companies, in light of proposals that would potentially abolish it or amend its role, which the companies considered an infringement on the Union's status and representative role in the sector.

The Capital Market Authority confirmed that it has given special importance to these objections and dealt with them seriously during the preparation of the law draft, as extensive dialogue channels were opened with all concerned parties, such as ministries, public institutions, and insurance companies, through a series of meetings and specialized technical consultations. Drafts of the law were also sent to sector representatives for review and feedback, and substantial amendments were indeed made in response to the proposed suggestions.

The Authority emphasized that the aim of the law draft is not to impose restrictions or stifle the work of companies, but to establish an organized, balanced, and transparent legal framework that enhances trust in the sector and creates a healthy competitive environment that fosters the development of the insurance market and achieves broader protection of the rights of policyholders and beneficiaries.

Qabeh noted that the new law generally aims to create a fair and balanced regulatory environment that encourages innovation and raises market efficiency while maintaining the rights of all parties, whether companies or policyholders, within a more mature and sustainable legal framework that enhances the insurance sector's contribution to economic development and better services for Palestinian citizens.

SadaNews attempted to obtain the position of the Union of Insurance Companies on the new insurance law, but the Union has not yet provided an answer to our request in this regard, and will publish the Union's opinion if available.

Earlier, Ammar Al-Akrar, Chairman of the Board of the Capital Market Authority, confirmed during a meeting with economic journalists that the new insurance law will enter into force before the end of the current year or the beginning of the next year.

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

It is worth noting that (13) insurance companies operate in Palestine, providing services across various insurance sectors, including vehicle insurance, health insurance, life insurance, property insurance, and agricultural insurance.

The total profits of insurance companies listed on the Palestine Stock Exchange reached approximately 9.5 million dollars in the first nine months of the current year, an increase of 13% compared to the previous year.