Israel Capital Market Authority Publishes 2025 Annual Insurance Complaints Report
Israel's Capital Market Authority published its 2025 complaints report, showing insurers paid 21.5 million NIS following public inquiries, with detailed breakdowns across various sectors.
The Capital Market, Insurance and Savings Authority has published its annual insurance complaints report for 2025, revealing that supervised entities paid approximately 21.5 million NIS to policyholders and savers following public inquiries. Of this total, about 16.2 million NIS was paid directly from insurance companies' funds.
The report allows for an examination of which companies accumulated a complaint rate higher than their respective market share in each insurance sector. The Capital Market Authority emphasizes that these figures represent inquiries made to the authority rather than complaints officially found to be justified, and the report does not cross-reference specific companies with exact reasons for complaints.
Property and Auto Insurance
In property and auto insurance, including comprehensive and third-party coverage, Direct Insurance accounted for 13.55% of inquiries against a market share of 5.76%. AIG also stood out, recording 7.17% of inquiries compared to a 3.51% market share. Menora Mivtachim registered 11.87% of inquiries with a 10.29% market share, while Migdal gathered 9.97% of inquiries against 9.29%.
Regarding overall property insurance, which includes apartments and other products, Direct Insurance accumulated 11.50% of inquiries against a 10.67% market share. AIG stood at 6.49% of inquiries versus 4.98% of the market, Libra reached 4.72% against 2.74%, and Wobi registered 2.76% compared to a market share of 0.93%.
The central issues across the property sector included poor service with 2,087 inquiries, delays in handling claims and paying benefits with 658 inquiries, and water damage in apartments with 465 inquiries. Additional prominent issues were delayed responses or lack of reply, and claim rejections.
Health, Travel and Nursing Care
In international travel insurance, Clal stood out by collecting 24.14% of inquiries against a 10.38% market share. AIG accumulated 11.49% of inquiries with a 5.69% market share, and Migdal recorded 10.34% against 4.60%. Menora registered 5.75% of inquiries compared to a 1.34% market share, while Phoenix Holdings held 9.24% against an 8.70% market share.
In the nursing care insurance sector, Harel Insurance & Finance gathered 52.95% of inquiries, matching a 49.93% market share. Phoenix Holdings stood out more notably in the relative gap, registering 7.45% of inquiries against a 4.09% market share. Conversely, Menora recorded 31.68% of inquiries with a 33.89% market share, and Migdal registered 1.86% against 7.11%.
The core reasons for complaints in nursing care were poor service with 528 inquiries, claim rejections with 240, and delays in handling and payment with 155 inquiries. The Authority's examples also detailed disputes over retroactive recognition of eligibility and improper investigations of nursing policyholders.
Life Insurance and Disability
In disability and personal accident insurance, Ayalon stood out by gathering 29.94% of inquiries against a mere 13.02% market share. Shlomo Insurance and Hachshara also registered high inquiry rates relative to their sizes, with Shlomo recording 3.40% of inquiries against 0.33% of the market, and Hachshara at 2.16% against 0.48%.
For life insurance with a pension component, Harel Insurance & Finance concentrated 24.52% of inquiries against a 15% market share. Ayalon gathered 2.43% of inquiries with a 1% market share. Across the broader life insurance sector, poor service remained the primary reason for inquiries, reaching 999 cases.
