Phoenix, Migdal, WeSure Win State's Auto Insurance Contract

The Israeli Treasury's Accountant General's office has awarded its vehicle insurance contract for state employees, retirees, and career military personnel for 2027 to Phoenix, Migdal, and WeSure. Phoenix and Migdal will each cover 40% of the contract, with WeSure taking the remaining 20%. The deal is expected to insure over 70,000 vehicles with an estimated financial scope exceeding 400 million shekels.

This marks the first time the contract includes career military personnel, with thousands anticipated to join the arrangement. The contract covers the private vehicles of eligible individuals, not the government's fleet. Participation is voluntary for state employees.

Phoenix's significant win, securing a 40% share, was considered surprising by industry insiders. While insuring state employees is a large-scale operation, aggressive bidding and low prices make it less profitable, a segment Phoenix, under Eyal Ben Simon, aims to reduce involvement in, focusing instead on higher-profit areas.

In the previous year's 2026 contract, only Migdal and WeSure were awarded the bid. Industry sources suggest that the prices offered in the current tender are even lower than those in 2026 due to intense competition and declining prices and profitability in the auto insurance market.

While full bid details are not yet public, estimates suggest the average premium per vehicle has decreased to around 4,500 shekels, down from approximately 5,000 shekels in 2026. This represents an estimated discount of 15% to 25% for employees compared to market rates, though actual costs vary by vehicle model, age, driver demographics, and insurance history. The new policies will allow for variable deductibles based on risk profiles and offer options for towing services and young driver coverage.