A new insurance company is being formed in the Middle East to cater to the Arab sector. Businessmen from Israel and Palestine have come together to create the company, which will compete in Israel’s insurance market. The as-yet-unnamed company is currently ramping up funds to meet Israeli regulations. Observers expect that the company will be fully operational by the end of next year. Thus far, the company has garnered a wealth of support from the Arab community.
At launch, the company will offer elementary insurance as well as car and property insurance. Future growth will be determined on how well the company can compete in the market and whether there is adequate demand for their policies. The company will not be offering health insurance for the foreseeable future.
According to Israeli insurers, the Arab community is one of the most underinsured communities in the world. Given the tense relationship between Israeli’s and Palestinians, Arabs are often left to deal with a lower level of service when dealing with companies harboring prejudices. The new insurance company will seek to fill the void in the insurance market and create competition that will drive down the price of policies overall.
Several Israeli insurers have said that the initiative is unlikely to succeed as it will be unable to compete with well established companies that can change their prices without much worry for solvency.