Insurance Pricing

What Is the Insurance Premium?

In the most simple terms, the insurance premium is defined as the amount of money the insurance
company is going to charge you for the insurance policy you are purchasing. The insurance premium is
the cost of your insurance

• The insurance premium can be paid on an annual basis, semi-annual or, as most cases, a monthly
financing of the premium. If the insurance company decides they want the insurance premium up front,
they may also require that.

• Extra charges may be added, for example, when a company charges issuance fees. The extra fees are
not premium, they would normally be defined as Administrative fees

Determining the insurance premiums:

• An insurance premium depends on the levels and types of risk. Meaning that whenever the risk is
more frequent and the items insured are more likely to get damaged, the higher the premium costs will
be.
• It also may depend on the contractor’s ( insured party) records hold in the Civil Registry or the
insurance company’s documents itself.

• The insurance premium is also affected by the competition in the insurance industry,
If the insurance company decides they want to aggressively pursue a market segment, it may adjust its
premium prices accordingly.

• The premiums’ ratios are determined based on the data that have been collected via: Government,
The Palestinian Central Bureau of Statistics (PCBS), Palestinian Insurance Federation (PIF), parent
company.