Chairman of the Federation Speaks to Al-Muraqeb Al-Ta'mini on the Role of the Insurance Sector in the Reconstruction of Gaza
The Chairman of the Board of the Palestinian Insurance Companies Federation, Mr. Anwar Shanti, affirmed that the Palestinian insurance sector is facing a pivotal stage that requires greater organization and cooperation to keep pace with the anticipated transformations in the local market, particularly amid the growing discussion surrounding the reconstruction of the Gaza Strip.
In an exclusive interview with Al-Muraqeb Al-Ta'mini magazine, Shanti explained that the issue of Gaza’s reconstruction represents a central focus in the upcoming phase. He noted that Palestine has been experiencing exceptional circumstances for nearly two years, during which the sector lost approximately 30% of its insurance portfolio in Gaza as a result of the war, in addition to the challenging economic conditions.
He pointed out that despite these circumstances, the Palestinian insurance market recorded a 2% growth rate as of June 30 of this year. This figure reflects the growing insurance awareness within Palestinian society and the increasing recognition among citizens of the importance of insurance protection as a priority in light of rising risks.
Shanti stressed that the Federation and all Palestinian insurance companies are fully prepared for the next phase. Reconstruction efforts will inherently require extensive transportation, logistics, and large-scale construction activities, all of which demand diverse insurance coverages. Furthermore, the entry of international donors to support reconstruction projects will open the door to new investments, necessitating the readiness of local insurance companies to insure these projects.
He explained that the Federation is considering two main options to handle major projects: the first is to operate through a consortium to jointly cover large-scale projects, and the second is to establish a Pool at the Federation level to provide specific coverages for reconstruction projects.
He added that the projects currently under discussion are extremely large, with each project valued between USD 300 million and USD 350 million. Such figures exceed the capacity of the local market to manage independently without partnerships with Arab and international insurance companies, particularly from Egypt, Jordan, and other Arab countries interested in participating.
Shanti emphasized that the Federation aims to serve as a central coordinating body to manage this cooperation and oversee insurance coverages in a way that ensures the optimal utilization of reconstruction funds, while also channeling them into other developmental projects within Palestine.
He further noted that work is currently underway to establish a preliminary consortium led by a coordinating entity responsible for distributing insurance shares among companies according to their expertise and areas of specialization. The concept is based on a panel system, whereby each company works with an appropriate reinsurer to ensure balanced risk distribution and to launch the reconstruction process on sound and professional foundations.
Shanti concluded by affirming that the resilience and continued development of Palestinian insurance companies despite ongoing crises reflect the vitality of Palestinian society and its determination to persevere. He stressed that the sector will remain a key pillar in supporting the national economy and strengthening social stability.
