‘And God said to him, “Your name is Jacob. Your name will not any longer be called Jacob, but Israel will be your name. And he called his name Israel.” '
A change of name for Abram occurred at God's first revelation of Himself as El Shaddai, and here a second change of name is referred to on God's second revelation of Himself as El Shaddai. It would appear that such revelations required the transformation of the recipients resulting in a change of name.
But as we know, Jacob had already been given this name after wrestling with God at Penuel (Genesis 32:28), and he had subsequently erected an altar to ‘God, the God of Israel' (Genesis 33:20). But he had delayed in returning to the family tribe and as so often in men's lives such life-changing events can dim with time. The idea of him as Israel has become faded. It is almost forgotten. The old Jacob had reasserted itself. Thus at this crucial renewing of the covenant at Bethel the change of name is renewed and emphasised. It is emphasising that what happened at Penuel is now to come into fruition. He is to be Israel.
A change of name in ancient days was seen as having deep significance. This is why at this crucial moment in the life of Jacob and of the tribe God emphasises his changed name. He must remember that he is no longer Jacob, but Israel. The past is behind him. The old Jacob is behind him. This is a new beginning. He is the one with whom God has striven and through whom He will carry out his purposes (Israel means ‘God strives').
We may see here an implied rebuke against Jacob's long stay in Succoth and Shechem. He had previously been given the new name of Israel preparatory to returning to the family tribe. But he had not done so, he had delayed. Now it is necessary for him to be renamed after the period of backsliding. It is a salutary thought that had he previously been faithful the shame of Shechem would not have occurred.
This change of name is emphasised later in the following verses. Once his twelfth son has been born and the full complement of sons made up he will journey on as Israel (Genesis 35:21). This also coincides with the death of Rachel. It is as though with her death, with the great hold she had had on him, he is now free to be what God wants him to be.