Insurance and Pension Service Quality Ranked, Revealing Major Gaps
Translated & summarized from Bizportal by baba
Israel's Capital Markets, Insurance and Savings Authority released its 2025 service index, revealing significant differences in customer care quality among insurance and pension companies. Ayalon led mandatory car insurance, Direct Insurance topped comprehensive car and health insurance, and Yelin Lapidot remained first in provident funds for 12 years. The index weights claims handling, customer satisfaction, and complaints, with leading companies varying by product type.
The story in 6 lines · by baba
- Israel's 2025 service index shows major quality gaps among insurance and pension companies.
- Leading companies vary by product, with no single firm dominating all sectors.
- Ayalon led mandatory car insurance, while Direct Insurance topped comprehensive car and health insurance.
- Yelin Lapidot maintained its 12-year lead in provident funds, with Meitav rising in pension funds.
- The index prioritizes claims handling, customer satisfaction, and complaint resolution.
- Consumers are advised to choose providers based on specific products, not just brand reputation.
Israel's Capital Markets, Insurance and Savings Authority has released its 2025 service index, evaluating the quality of customer care provided by insurance and pension companies. The index highlights significant disparities among firms, with leading companies varying by product type. For instance, excellence in car insurance does not necessarily translate to the same ranking in health or home insurance.
In mandatory car insurance, Ayalon ranked first, followed by Harel and The Phoenix. For comprehensive car insurance, Direct Insurance led, with Liberty and Ayalon in second and third place respectively. This sector handled approximately 416,000 claims in 2025, with payouts totaling around 9 billion shekels.
For home insurance, Migdal climbed to first place, The Phoenix was second, and AIG third, showing a notable improvement from its previous eighth-place ranking. In health insurance, Direct Insurance took the top spot, followed by Clal and Harel. PassportCard maintained its lead in travel insurance, with Direct Insurance and The Phoenix also in the top three.
In the pension fund sector, Meitav surged from fourth to first place, with Clal and The Phoenix ranking second and third. However, in provident funds, Yelin Lapidot has held the top position for 12 consecutive years, with Meitav and Analyst following. Analyst notably improved its standing, moving from seventh to third.
The index's methodology assigns significant weight to claims handling (40% in general insurance), customer satisfaction and recommendations (30%), public complaints (15%), phone response times (10%), and digital services (5%). For pension and provident funds, customer satisfaction and recommendations account for 55%, with complaints (20%), response times (10%), fund allocation speed (10%), and digital services (5%) also factored in. The authority also operates comparison systems for management fees and performance, encouraging a holistic approach to selecting financial service providers.
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