This answer is written by AI. The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. Do not rely solely on the information provided in this response for any legal decisions. Consult with a qualified legal professional before making any decisions.

Do UK Insurers Need a License to Operate in Israel?

Question from Al, Do UK Insurers Need a License to Operate in Israel?

Answer from AI:

When it comes to the insurance industry, regulations can be complex and vary significantly from one country to another. For UK insurance companies looking to underwrite insurance and/or reinsurance business in Israel, understanding the regulatory requirements is crucial. This involves knowing whether a UK-based insurer needs to be licensed in Israel to operate legally.

Regulatory Framework for Insurance Companies

The insurance industry in Israel is regulated by the Capital Market, Insurance and Savings Authority (CMISA), which operates under the Ministry of Finance. The CMISA is responsible for the supervision and regulation of the insurance sector in Israel, ensuring the stability and integrity of the market.

Requirements for Foreign Insurers

For a UK insurance company to underwrite insurance or reinsurance business in Israel, it generally needs to comply with the following:

  1. Obtaining a License: Foreign insurance companies must obtain a license from the CMISA to conduct insurance or reinsurance activities within Israel. This involves meeting specific criteria, including financial stability, business conduct standards, and the submission of various documents.
  2. Local Representation: Typically, foreign insurers are required to establish a local branch or appoint a local representative in Israel. This entity or individual acts as the point of contact between the insurer and the regulatory authorities, as well as policyholders.
  3. Compliance with Israeli Laws: UK insurers must ensure that their operations comply with Israeli insurance laws and regulations. This includes adherence to solvency requirements, consumer protection laws, and anti-money laundering (AML) regulations.

Exceptions and Special Arrangements

There may be exceptions or special arrangements that allow UK insurers to operate in Israel without a full license under certain conditions. For example, reinsurance activities sometimes have more lenient requirements compared to direct insurance business. Additionally, bilateral agreements between countries can facilitate cross-border insurance operations. However, as of my last update, specific agreements between the UK and Israel affecting insurance licensing requirements should be verified for current details.

Consulting with Legal Professionals

Given the complexity of international insurance regulations and the potential for changes in legal frameworks, UK insurance companies should:

  • Consult with legal professionals who specialize in insurance law and have experience with the Israeli market. This can provide tailored advice and ensure compliance with all regulatory requirements.
  • Consider working with local partners or advisors in Israel who understand the local market and regulatory landscape.


In summary, UK insurance companies generally need to be licensed in Israel to underwrite insurance and/or reinsurance business, subject to specific requirements and potential exceptions. The process involves regulatory approval, local representation, and adherence to Israeli laws. Due to the complexities involved, seeking professional legal advice is strongly recommended to navigate the regulatory environment effectively.

For more information on the regulatory framework governing the insurance industry in Israel, you can visit the Capital Market, Insurance and Savings Authority website. Remember, this information is intended as a general guide and not as legal advice. Always consult with a legal professional for advice specific to your situation.

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