The revised insurance law is expected to come into effect before the end of this year, to replace the existing law, which dates to 2005.
Mr Ammar Al-Akkr, chairman of the Palestinian Capital Market Authority (PCMA), revealed this as well as some details of the new insurance law at a meeting last month with the Palestinian Economic Media Alliance (PEMA), reported Sadanews.
He said that the new law aims to bring about a qualitative shift in the insurance sector by adopting risk-based pricing to introduce greater fairness in determining insurance premiums.
The amended law also provides for the formation of a committee to resolve insurance disputes expeditiously. The panel will comprise a judge, a PCMA representative, and a representative of insurance companies. This is especially important given the backlog of cases in the courts due to the absence of a specialised insurance judiciary.
Mr Al-Akkr pointed out that the revised law would enhance the financial solvency of insurance companies and restore investor and consumer confidence. There will also be a plan to raise the capital of insurance companies over the next five years, to ensure that insurers can meet their obligations and reduce their reliance on foreign reinsurance.
He added that the PCMA had completed its final consultations on the draft law and submitted it to the Cabinet.
The Palestinian market includes 12 insurance companies. The total insurance premiums written in 2024 amounted to approximately $384m, while the total claims paid were around $260m. The Palestinian insurance sector is heavily dependent on motor insurance, which commands around 70% of the market.