Clalit Selects Ayalon to Manage Long-Term Care Insurance for 2.7 Million Members from 2027

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.