Israeli Regulator Returns $5.7 Million to Public After Handling 17,000 Complaints

Israel's Capital Markets, Insurance and Savings Authority has released its annual report detailing public complaints handled in 2025. The authority successfully intervened in 16,906 cases against insurance, pension, and financial service providers, resulting in the return of over 21.5 million shekels (approximately $5.7 million USD) to the public. The report highlights the success rate of interventions across different sectors, with assistance provided in about 60% of provident fund cases, 56% of life and disability insurance cases, 53% of pension cases, and 43% of general insurance cases.

The report also analyzes complaint rates relative to market share for various companies. In property insurance, Clal, Ayalon, The Phoenix, and Harel were noted positively. For liability insurance, The Phoenix, Harel, Clal, Ayalon, and Menora Insurance performed well. However, Pool, Direct Insurance, and Libra had significantly higher complaint rates than their market share in this sector. In health insurance, Harel, Menora, and Clal stood out positively, while in travel insurance, PassportCard (David Shield) was a standout, but Clal, AIG, Migdal, and Menora Insurance had higher complaint rates than expected.

Regarding pension funds, Clal, The Phoenix, Menora, and Migdal Makif stood out positively. In provident funds, Meitav, Mor, Altshuler Shaham, Analyst, Yelin Lapidot, and Clal were praised. Conversely, Menora, Harel, The Phoenix, Migdal, and Infinity had higher complaint rates relative to their market share. For Slice Provident Fund Ltd., the focus was on member inquiries for information as part of enforcement measures.

In life insurance, Migdal was a significant standout, followed by The Phoenix, Clal, Menora, and Hachshara. Harel, however, had a considerably higher complaint rate than its market share in this area. The report breaks down complaint categories, with general insurance accounting for 27%, health and personal accidents for 21%, pensions for 18%, provident funds for 10%, agents and consultants for 9%, life and disability insurance for 9%, financial services for 5%, and the pension clearinghouse for 1%.

Amit Gal, Supervisor of the Capital Markets, stated that the public complaints report is a crucial annual metric for the authority. He emphasized its role not only in assisting individuals but also as a tool for identifying market trends and failures, and for the public to highlight issues needing attention. Gal noted that the report reflects the authority's commitment to service and the public's trust in it to protect their rights.