Insurance Agents to Offer Loans Following New Initiative
Insurance agents in Israel are set to gain a new revenue stream by being authorized to broker loans for their clients, a move spearheaded by the "Arbitrage Committee" under the Israel Securities Authority. Previously, agents primarily focused on selling insurance and managing pension and provident funds. This new initiative, which requires agents to obtain an additional license, will allow them to also market mutual funds, which manage NIS 850 billion in assets in Israel, presenting a significant growth opportunity.
In parallel, Hachshara Insurance, led by CEO Shimon Miron, is launching a "credit broker" platform for insurance agents. This platform will enable agents to facilitate loans from banks, credit companies, and non-banking institutions for their clients. Currently, agents can only assist clients in taking loans against their existing funds within specific accounts. Hachshara aims to expand agents' capabilities to include intermediating in mortgages, general-purpose credit (for vehicles, vacations, etc.), small and medium-sized business loans, importer financing, and commercial real estate financing.
Hachshara Insurance plans to support agents with experienced loan professionals and training in mortgage consulting. Agents will have the option to either establish their own loan brokerage operations with Hachshara's guidance or utilize Hachshara's credit broker to present financing options to their clients. Miron stated that insurance agents possess the most comprehensive and up-to-date understanding of their clients' financial situations, and this new platform will equip them with the knowledge and connections to translate that insight into valuable loan offerings, marking it as the first of its kind in Israel's insurance sector.
