Phoenix, Migdal, and WeSure Win Major Israeli Government Auto Insurance Contract
Translated & summarized from Globes by baba
Phoenix, Migdal, and WeSure have won a tender to insure around 70,000 Israeli state employees and career military vehicles, valued at approximately 400 million shekels. The contract, which includes expanded coverage and digital enrollment options, also marks the first time career military vehicles are included.
The story in 5 lines · by baba
- Three insurers awarded contract for 70,000 state vehicles.
- Tender valued at 400 million shekels, up from last year.
- Career military vehicles included for the first time.
- WeSure expects 65 million shekels in revenue from the deal.
- Contract offers benefits like differential pricing and digital enrollment.
Three Israeli insurance companies, Phoenix, Migdal, and WeSure, have been awarded a contract to insure approximately 70,000 state employees and career military personnel vehicles for the upcoming year. The tender is valued at around 400 million shekels (approximately $108 million USD), an increase from last year's 350 million shekels. WeSure estimates its share of the contract will generate approximately 65 million shekels in revenue, insuring about 11,300 vehicles.
This year's tender marks the first time the Ministry of Finance has included vehicles belonging to career military personnel, aiming to attract thousands of soldiers to the government's insurance plan and offer them attractive, market-aligned terms. WeSure has secured this contract for the fifth consecutive year since 2022, while Migdal has won it for the second year in a row. Phoenix returns to the list of winners after an absence of at least a decade.
The government's Treasury Department highlighted that the tender process integrated the state's purchasing power with competitive and digital tools. The agreement includes features such as differential pricing for careful drivers, potential waivers of deductibles, and policy extensions like roadside assistance and optional daily young driver insurance. The Ministry also noted that 66% of employees opted for digital enrollment last year, emphasizing a streamlined, "one-click" process.
Despite the significant government contract, the article also points out a broader trend of substantial decreases in car insurance prices in Israel over the past year. The tender's success is attributed to a strategy combining government purchasing power with competitive and digital tools, offering benefits like differential pricing and expanded coverage options.
