Israelis Receive $6 Million in Payouts After Regulator Intervention
Translated & summarized from Calcalist by baba
Israel's Capital Markets, Insurance and Savings Authority reported that insured individuals received 21.5 million shekels in 2025 due to interventions following public inquiries. Harel Insurance paid out the most, totaling 9.6 million shekels. The report detailed cases of denied benefits, agent misconduct, and pension miscalculations, all resolved with the authority's help. While 60% of provident fund inquiries led to relief, the definition of relief is broad, encompassing information provision.
The story in 5 lines · by baba
- Insured Israelis received 21.5 million shekels in 2025 following regulator intervention.
- Harel Insurance paid out the largest share, approximately 9.6 million shekels.
- The authority handled 16,906 public inquiries in 2025.
- A long-term care claim was approved retroactively after regulatory intervention.
- Health insurance saw 600 claim rejection inquiries and 1,870 service complaints.
Israel's Capital Markets, Insurance and Savings Authority reported that insured individuals received a total of 21.5 million shekels (approximately $6 million) in payouts during 2025 as a result of interventions following public inquiries. The authority received 16,906 inquiries throughout the year, a 4% decrease from 2024, but the total amount paid out increased by 5%. Harel Insurance led in payouts, disbursing approximately 9.6 million shekels, nearly 45% of the total sum.
One case involved a woman whose insurance company initially denied retroactive long-term care benefits due to insufficient medical documentation. After the authority intervened, the company re-examined the records and recognized the claimant's eligibility from January 2022, paying her 153,952 shekels.
Another instance saw two insurance agents ordered to refund a client 15,000 shekels for failing to cancel a redundant policy, with each agent bearing half the cost. In a separate case, an insurance company miscalculated a 84-year-old policyholder's pension for over five years. Following the authority's involvement, the company not only paid the arrears but also refunded an overcharged tax of over 2,700 shekels.
The report highlighted that regulatory intervention is not always needed for complex disputes, sometimes resolving issues like policy cancellations, fund transfers, or information requests. In the provident funds sector, 60% of closed inquiries resulted in relief for the inquirer, with similar rates in life insurance (56%), pensions (53%), and general insurance (43%). However, the authority defines "relief" broadly, including information provision, not just financial compensation.
Health insurance saw 600 inquiries regarding claim rejections and 1,870 concerning poor service. The report also detailed two cases where agents charged clients 6,248 and 9,143 shekels for services that could have been performed for free, without proper disclosure. The authority deemed these complaints valid and ordered the amounts to be returned.
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