Insurance Agents to Offer Loans Through New "Credit Broker" Platform

Insurance agents in Israel are set to gain a new revenue stream as Hachshara Insurance, led by CEO Shimon Miron, launches a "credit broker" platform. This initiative will enable agents to facilitate loans for their clients from banks, credit companies, and non-banking financial institutions. Previously, agents primarily focused on selling insurance and managing pension and provident fund transfers.

This expansion into credit intermediation will allow agents to offer a wider range of financial products, including mortgages, general-purpose loans for purchases like cars or vacations, and financing for small and medium-sized businesses, import financing, and commercial real estate. Hachshara Insurance plans to support agents with experienced loan professionals and training in mortgage consulting.

Agents will have two operational models: establishing their own credit brokerage services with Hachshara's support or utilizing Hachshara's credit broker to present financing options to their clients. Miron stated that this platform is the first of its kind in Israel's insurance sector, leveraging the agent's comprehensive understanding of their clients' financial situations to provide valuable loan solutions.

In parallel, the Israel Securities Authority is advancing a plan, dubbed the "Arbitrage Committee," that will permit insurance agents to also market mutual funds, a move expected to significantly boost the NIS 850 billion mutual fund industry in Israel. This initiative requires agents to obtain an additional license.