Insurance agents president: "No real competition"
Shlomo Isaac: Israel ranks last in insurance companies to policyholders ratio | We all pay the price | Expensive car insurance despite decline in theft rates
"There is no real competition in the insurance market. Israel ranks last among OECD countries in the ratio of insurance companies to policyholders," says Shlomo Isaac, President of the Insurance Agents Association, in an interview with Maariv ahead of the opening of the agents' annual conference.
According to Isaac, after many years, two new insuran`ce companies entered the market – Anchor, managed by Uri Omid, which will focus on property insurance, and Securitas, which will operate in the field of heavy vehicle insurance. "They have not yet changed the market situation, but they are the only ones truly creating competition. Without the agents, the situation would be even worse," Isaac points out.
"According to the Israel Police, car thefts in Israel have decreased by 18%. I haven’t seen insurance premiums drop. Car insurance premiums are going through a roller coaster, and today they are high. The pricing in the market needs to change. There are insurance companies that refuse to insure expensive SUVs. These claims are baseless and do not stand up to reality. I am aware of the criticism, but it serves the interests of direct insurance companies."
Isaac criticizes the phenomenon of insurance agents traveling abroad. "Insurance agents should be compensated for their work, not through foreign trips or perks. I have never traveled with an insurance company. Agents receive commissions for success, and it is not appropriate for them to travel at the companies' expense. When you are dealing with public money, you cannot afford to be in these places. It is neither appropriate nor dignified."
Regarding the long-term care insurance crisis, he elaborates: "We warned about the situation two years ago, I sent materials to Knesset members, but unfortunately, they did not listen to us. Long-term care insurance in Israel began through voluntary or collective insurance policies. Reinsurance companies left Israel due to the lack of economic viability in the long-term care field. Following them, insurance companies also left. To solve the crisis, we must allow the issuance of new long-term care insurance policies, with four out of six eligibility criteria for care. Alternatively, it’s time to consider imposing a national long-term care tax."
Isaac warns of an expanding phenomenon of early pension or study fund withdrawals: "This phenomenon is being driven by fraudsters who want to make quick money. They approach vulnerable populations and get them to sign various promissory notes. In the end, the client is left with 50% of their pension funds – 35% goes to tax payments for improper withdrawals, and another 15% to fees.
"Anyone considering withdrawing their pension must go through a licensed agent to assess their real needs. It should not be done casually, like buying cigarettes at a convenience store. We have submitted a bill that requires pension advice from a licensed agent before early withdrawals, and I have established a committee in the association that handles the agents' responsibilities."