Phoenix, Migdal, and Wysure Win State Employees' Auto Insurance Tender

Three Israeli insurance companies, The Phoenix, Migdal, and Wysure, have been selected to provide auto insurance for state employees, retirees, and career military personnel for 2027. The tender, valued at over 400 million shekels annually in premiums for more than 70,000 vehicles, is the largest of its kind in Israel. This marks a significant expansion from the previous year's tender, which covered only state employees and retirees and was valued at over 350 million shekels. The inclusion of career military personnel is a key change for the 2027 tender. While Migdal and Wysure were also winners in the 2026 tender, The Phoenix is a new addition to the winning consortium, increasing the number of companies sharing this large insurance pool.

The state leverages its consolidated purchasing power to negotiate competitive prices and terms for tens of thousands of insured individuals. For the winning insurance companies, this provides access to a substantial customer base and significant premium turnover, although profitability per policy may be lower. Ronen Agassi, CEO of Migdal, noted that while the tender contributes significantly to the company's activity volume, its impact on profit is more moderate.

The 2027 tender also introduces more personalized insurance terms, offering preferential conditions for drivers with good insurance histories and the option to purchase coverage that waives deductibles. A new feature allows for daily insurance for young drivers, alongside roadside assistance and towing services, catering to households where young drivers use vehicles intermittently. This aligns with a broader industry trend towards more individualized pricing based on driver data, vehicle, and usage patterns, moving away from broad pricing categories.

This development occurs amidst a shift in the auto insurance market, with some sectors experiencing a decrease in comprehensive insurance rates during 2025 and 2026 after a period of sharp increases. The competition within this tender is expected to further pressure companies to offer attractive prices and terms. The process is also becoming more digital, with a majority of policyholders joining independently online, reducing operational costs for insurers and streamlining the process for the state.

For The Phoenix, Migdal, and Wysure, winning this tender secures significant revenue and a strong presence in a major market segment. The ultimate benefit for the state and its insured citizens will be whether the increased competition translates into lower prices and better terms compared to the private market in 2027.