Direct Insurance CEO Kobi Hever to Depart After Eight Years

Kobi Hever, the CEO of Direct Insurance (part of the IDI Insurance group), has decided to step down after an eight-year tenure. In a statement, the company highlighted its growth under Hever's leadership, noting a 2.5-fold increase in equity to approximately 1.3 billion shekels, a more than doubling of the stock's value (adjusted for dividends), and a doubling of annual net profit from around 200 million shekels to 400 million shekels. Despite these achievements, Direct Insurance's stock performance lagged behind competitors, with other insurance stocks rising sixfold or more and the industry index surging 760% during the same period. Direct Insurance is currently valued at 3.9 billion shekels, while the five largest insurance companies are valued at 20 billion shekels or more.

The company attributes this difference to its focused business model. Unlike larger competitors active in diverse fields, particularly long-term savings products, Direct Insurance concentrates on insurance and non-bank credit (through "Minhum Yashir"). It is the largest company in Israel for property and auto insurance, directly competing with The Phoenix. Direct Insurance also reported growth in customer numbers and premium collection across its other lines, including life, health, travel, and home insurance.

The company emphasizes its direct-to-customer approach, bypassing agents and utilizing digital channels to allow customers to purchase policies cheaply and efficiently. Direct Insurance is also expanding into savings policies, claiming to offer the lowest management fees in the market, and plans to launch a customer club soon. Hever, who joined Direct Insurance in 2018, replacing Raviv Tsofer, expressed pride in the company's achievements and confidence in its future success. Prior to leading Direct Insurance, Hever held management positions and served for 14 years at the Ministry of Finance, including as head of the Budget Division.