Clalit Selects Ayalon to Manage Long-Term Care Insurance for 2.7 Million Members from 2027
Translated & summarized from Maariv by baba
Clalit Health Services has appointed Ayalon Insurance to manage long-term care insurance for 2.7 million members from 2027, following Harel's exit. The move secures coverage continuity amid ongoing market challenges, with the transition requiring no action from insured individuals.
The story in 6 lines · by baba
- Clalit chose Ayalon to manage long-term care insurance for 2.7 million members starting in 2027.
- Ayalon was the only company to bid in the tender, ensuring continuity of coverage.
- Expanded eligibility and rising claims have financially strained long-term care insurance programs.
- Harel Insurance ended its contract due to financial losses, prompting the search for a new insurer.
- The new contract with Ayalon spans up to eight years and transitions automatically for members.
- Structural challenges in the long-term care insurance market remain unresolved despite the new deal.
Clalit Health Services has chosen Ayalon Insurance to manage the long-term care insurance for its 2.7 million members starting in 2027. Ayalon was the sole bidder in the tender process, ensuring continuity of coverage despite ongoing structural challenges in Israel's long-term care insurance market. The decision follows a prolonged period of uncertainty regarding the future of these insurance plans, which have expanded eligibility criteria under regulatory guidance to ease access for insured individuals. However, these expansions increased payout volumes and strained the financial balance of the programs, compounded by rising claim numbers and longer durations of care needs.
Previously, Harel Insurance managed Clalit’s long-term care insurance but sought to end the contract due to financial erosion of the plan. After temporary extensions and policy adjustments, Clalit was given until the end of 2026 to find a new insurer. The agreement with Ayalon is set for up to eight years and will transition automatically without requiring action from insured members.
Despite resolving the immediate risk for Clalit’s insured population, the fact that only one company bid highlights the persistent structural issues in the sector. The broader challenge remains how to sustain comprehensive long-term care insurance in Israel at affordable prices and under terms acceptable to insurers. This issue continues to loom over the country’s healthcare system.
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