Insurance Companies Face Scrutiny Over Customer Complaint Ratios
Translated & summarized from Ice by baba
Israel's Capital Markets, Insurance and Savings Authority reported that insurance companies paid out approximately NIS 21.5 million in 2025 due to public complaints. The annual report revealed that several companies, including Direct Insurance, AIG, and Liberty, received a disproportionately high number of complaints relative to their market share across various insurance sectors like property, vehicle, and health. Common issues cited include poor service, claim delays, and claim rejections, though the report does not link specific reasons to individual companies.
The story in 6 lines · by baba
- Insurance companies paid NIS 21.5 million in 2025 due to public complaints, according to a new report.
- Direct Insurance and AIG received disproportionately high complaints in property vehicle insurance.
- Liberty Insurance had a high complaint ratio in mandatory vehicle insurance.
- Harel Insurance led in complaint volume for professional liability insurance.
- Ayalon Insurance had nearly a third of complaints in disability and personal accident insurance.
- Poor service, claim delays, and rejections were common complaint reasons across sectors.
Israel's Capital Markets, Insurance and Savings Authority released its annual report on insurance company complaints, revealing which firms receive a disproportionate number of public inquiries relative to their market share. In 2025, regulated entities paid out approximately NIS 21.5 million to policyholders and savers following public complaints, with NIS 16.2 million coming from insurance companies.
The report highlights that complaint ratios vary significantly by insurance type. For property vehicle insurance, Direct Insurance and AIG stood out with significantly higher complaint percentages than their market shares. Direct Insurance handled 13.55% of complaints versus a 5.76% market share, while AIG received 7.17% of complaints for a 3.51% market share. Other companies like Menora and Migdal also showed higher complaint ratios, as did smaller firms such as Shlomo Insurance, Shimra, and Liberty. Across all property insurance, including homes and other items, Direct Insurance again had a higher complaint ratio (11.50%) than its market share (10.67%). Common issues in property insurance included poor service, delays in claim processing and payments, and water damage in apartments.
In mandatory vehicle insurance, Liberty received 8.63% of complaints compared to its 3.85% market share. The Israeli Pool, which handles residual insurance, had a notably high complaint ratio of 21.47% against an 8.05% market share. For professional liability insurance, Harel had the highest complaint volume at 40.91% of inquiries versus a 23.60% market share, while Hachshara stood out with a significant disparity between its 13.64% complaint share and 3.83% market share.
In health and travel insurance, AIG and Clal showed higher complaint ratios in travel insurance, with Clal receiving 24.14% of complaints for a 10.38% market share. For health insurance without long-term care, AIG had a disproportionately high complaint rate (2.14% of complaints vs. 0.50% market share). Common complaints across health insurance were poor service, claim rejections, and delays in processing and payment.
Further analysis revealed that Ayalon Insurance had nearly a third of complaints in disability and personal accident insurance (29.94% of complaints vs. 13.02% market share), with Shlomo Insurance and Hachshara also showing high complaint ratios relative to their size. In long-term care insurance, Harel had a high volume of complaints (52.95% vs. 49.93% market share), while Phoenix stood out for its relative disparity (7.45% vs. 4.09% market share). For life insurance, Harel and Ayalon had higher complaint ratios, particularly in life insurance with a pension component and in death and mortgage insurance. Ayalon and Direct Insurance were prominent in disability insurance, with Ayalon showing a significant gap between its complaint share and market share.
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