Insurance Agents Earn Billions Annually in Israel

Insurance agents in Israel earned a total of 13.2 billion shekels in commissions over the past year, a 10% increase from the previous year and a 46% surge since 2020. The number of active insurance agents also grew by 4% to over 13,000 nationwide. These commissions, paid by financial institutions managing long-term savings like pension funds and provident funds, are derived from moving clients between institutions and ongoing fees based on client assets. Some agents also receive bonuses and travel incentives.

While the average agent earns over one million shekels annually, this figure is misleading. Only 13% of agents, approximately 1,700 individuals, earn more than one million shekels per year. A significant portion, one-third of all agents, earn at least 500,000 shekels annually, equating to a monthly income of over 42,000 shekels. Conversely, 43% of agents earn up to 250,000 shekels annually, and another 24% earn between 250,000 and 500,000 shekels.

These figures represent gross income, not profit. Agents earning higher amounts often incur significant operational costs, such as employing staff, which reduces their net profit. However, they can deduct business expenses for tax purposes. The growth in agent earnings is closely tied to the expansion of Israel's long-term savings market, which grew by 16% in 2025, reaching nearly 3.3 trillion shekels. This growth is attributed to market returns, automatic pension contributions, and other savings deposits.

Meanwhile, management fees paid by the public for long-term savings have seen a slight decrease. Pension fund management fees for new contributions dropped to 1.54%, while fees on accumulated savings remained stable at 0.15%. Average management fees for provident and study funds on accumulated assets were 0.53%.