How the Insurance Market Works: The Key Players
The insurance market includes consumers, insurance companies, agents, and regulators—each with a role, interests, and influence on the coverage and price you receive. On this page, you will meet the key players, understand how they operate, and explore tools that can help you compare, ask the right questions, and make more informed insurance decisions.
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To choose insurance wisely, it is important to understand who operates behind the scenes and what each party's interests are.
The insurance market is made up of more than just policyholders and companies. Agents, advisers, and government bodies that set the rules of the game also operate between the parties. Understanding the market structure will help you manage your insurance more consciously and recognize when your interests may conflict with those of another party.
- We, the consumers: Why is it sometimes better to be part of a "group"?
- Insurance companies: How their business model works and what happens when you file a claim.
- Insurance agents: Who pays them and what is important to ask them.
- The Regulator: Who protects us and what comparison tools are available.
Insurance consumers – us
Insurance consumers are all of us: individuals, families, as well as companies and organizations that purchase insurance for their employees.
The power of the group: Insurance through the workplace is sometimes significantly cheaper than private insurance. The reason is simple: when the group is large, its bargaining power increases and risk is spread out.
Insurance companies
About twenty insurance companies operate in the Israeli insurance market, but in practice, a small number of large companies insure most of the public. These are business entities whose goal is to make a profit.
Insurance agents
Insurance agents act as intermediaries between policyholders and insurance companies. They help select policies, compare products, and sometimes handle claims as well.
In most cases, you do not pay the agent directly. Their compensation comes from the insurance company as a sales commission.
- The higher the Premium you pay, the higher the agent's commission may be.
- This does not mean the agent is against you. There are professional, reliable agents who provide a critical service. The goal is simply to be aware of the incentive structure and ask questions before making a decision.
The Regulator – the insurance supervisor
The Regulator responsible for safeguarding the rules of the game is the Capital Market, Insurance and Savings Authority. Its role is to protect consumers from the powerful entities in the market.
Its responsibilities include:
- Determining which policies insurance companies may sell
- Overseeing the conduct of insurance companies and insurance agents
- Setting rules for commissions and pricing
- Publishing consumer protection guidelines
- Leading reforms aimed at improving policyholders' situation.
For example, in recent years, steps have been taken to reduce Duplicate insurance coverageA situation in which multiple policies cover the same risk, resulting in unnecessary premium payments. in health insurance and improve transparency for consumers.
The Regulator has created simple digital tools to help you make decisions independently:
Tools designed to help you
- Insurance Mountain: a website that lets you view all policies registered in your name in one place. It is highly recommended that you check it once a year.
- Comparison calculators: tools for comparing car, home, and health insurance prices among different companies.
Frequently asked questions
Is it better to work with an insurance agent or buy insurance directly from the company?
It depends. Buying directly may sometimes be cheaper, but a good agent can advocate for you with the insurance company at the critical moment of filing a claim.
What happens if the insurance company refuses to pay a claim?
You can contact the company's public complaints department, the Capital Market Authority, or seek legal advice. Understanding the policy terms in advance can prevent most of these disputes.
How do I know whether I have Duplicate insurance coverage?
Visit our guide to Insurance Mountain and follow the instructions to see which policies are registered in your name. If two policies appear for the same area—for example, personal accident insurance twice—you may be paying twice unnecessarily.
In summary,
The insurance market is an arena of interests, but once you understand how it works, it is easier to navigate. Remember: you are the customers, and the power to choose and compare is in your hands.