Insurance Companies Face Scrutiny Over Customer Complaint Ratios
Translated & summarized from Ice by baba
Israel's Capital Markets, Insurance and Savings Authority released its annual report on insurance company complaints, showing that several firms receive a disproportionate number of public inquiries relative to their market share. In 2025, the authority facilitated NIS 21.5 million in payments to policyholders. Companies like Direct Insurance, AIG, Libra, and Ayalon were highlighted for higher-than-average complaint ratios in various sectors, including vehicle, property, and disability insurance. Common reasons cited for complaints across different insurance types included poor service, delayed payments, and claim rejections.
The story in 6 lines · by baba
- Israel's insurance regulator reported companies with disproportionately high complaint rates relative to market share.
- In 2025, NIS 21.5 million was paid to policyholders, facilitated by the authority.
- Direct Insurance and AIG faced high complaint ratios in property vehicle insurance.
- Libra and the Israeli Pool had elevated complaint rates in mandatory vehicle insurance.
- Ayalon Insurance received nearly a third of complaints in disability and personal accident insurance.
- Poor service, delayed payments, and claim rejections were common complaint reasons.
A new annual report from Israel's Capital Markets, Insurance and Savings Authority reveals which insurance companies receive a disproportionately high number of public complaints relative to their market share. In 2025, the authority facilitated payments of approximately NIS 21.5 million to policyholders and savers, with NIS 16.2 million coming from insurance companies themselves.
The report highlights significant variations across different insurance sectors. For instance, in property vehicle insurance, Direct Insurance and AIG received a higher percentage of complaints than their market share would suggest. Direct Insurance accounted for 13.55% of complaints versus a 5.76% market share, while AIG had 7.17% of complaints compared to a 3.51% market share. Other companies like Menora and Migdal also showed slightly higher complaint ratios in this sector.
In mandatory vehicle insurance, Libra stood out with 8.63% of complaints against a 3.85% market share. The Israeli Pool, which handles residual insurance, also had a high complaint rate at 21.47% of complaints for an 8.05% market share. Common reasons for complaints across property and liability insurance included poor service, delays in claim processing and payments, and water damage in homes.
Other areas examined include building property insurance, where Libra and Wensure had higher complaint ratios. In professional liability insurance, Harel and Hachshara were noted for high complaint volumes relative to their market size. For health and travel insurance, companies like Clal, Menora, and Migdal were above their market share in complaints, particularly for travel insurance. Ayalon Insurance was prominent in disability and personal accident insurance, receiving nearly a third of all complaints in that category despite a much smaller market share.
In long-term care insurance, Harel had a high volume of complaints, while Phoenix stood out for the relative difference between its complaint rate and market share. For life insurance, Harel and Ayalon showed higher complaint ratios, especially in the case of death and mortgage insurance. Ayalon and Direct Insurance were also noted for high complaint rates in disability insurance. The report clarifies that these figures represent public inquiries to the authority, not necessarily complaints found to be justified, and does not detail specific reasons for complaints against individual companies.
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