ESAF and the Insurance Sector

Continued restrictions on the movement of people and goods—including the network of checkpoints and other physical barriers in the West Bank, as well as a range of administrative barriers to development—have had serious implications on the overall growth of the Palestinian economy.

Political and economic uncertainties leave many enterprises and households in Palestine with few formal options to serve as social safety nets or as means to mitigate some of the risks in doing business in this environment. There is strong preference for informal solutions, such as turning to family or going into debt, to deal with crises and there is a general cultural resistance to the notion of insurance.

Public perceptions about insurance services are not very positive, especially with regard to settling complaints. In fact, recent studies in the West Bank and Gaza found that only an estimated 30% of respondents have insurance policies of some kind. Mandatory auto insurance is the most prevalent (74%), followed by health (33%), general (7.4%), and life (1.6%). In response, Expanded and Sustainable Access to Financial Services program (ESAF) is working with the public and private sectors in Palestine to grow momentum for insurance services by focusing on enhancing three key areas:

1) Supportive Infrastructure,

2) Supply of Insurance Services, and

3) Demand for Insurance Services.