Israel Capital Market Authority Proposes Easing Group Health Insurance Rules

Israel's Capital Market Authority has published a draft directive aimed at easing regulations for insurance companies offering group health insurance policies. These policies are typically provided to employees through their workplaces or to members of large organizations, with terms negotiated between group representatives and insurers.

Under the new guidelines, insurance companies will be allowed to pre-structure various options for additions and modifications to coverage within their master frameworks, based on approved individual insurance plans. This flexibility enables insurers to offer tailored packages to different organizations without requiring individual regulatory approval for every policy, regardless of the group's size.

According to the Capital Market Commissioner's report for 2025, insurers collected approximately ₪8.2 billion in group health insurance premiums last year for illness and hospitalization coverages. Of that total, roughly ₪4.9 billion came from group long-term care insurance, primarily through health maintenance organizations (HMOs). The newly proposed changes will not apply to HMO-backed long-term care policies, leaving a core market of about ₪3.3 billion encompassing medical expenses, dental, and critical illness insurance.

Currently, insurers must submit group health plans covering more than 10,000 members to the Capital Market Authority for prior review. The new framework seeks to streamline bureaucracy and shorten approval timelines, though it does not mandate lower premiums or guaranteed coverage expansions for policyholders. Public and industry comments on the draft are open until November 29, and the rules will take effect three months after the final circular is published.