Ayalon is the only bidder for the Clalit long-term care insurance tender

Out of six candidates for operating the long-term care insurance of Clalit Health Services, only the insurance company Ayalon submitted a bid for the tender, Calcalist has learned. This is a surprising result for the tender, which ended a few days ago and whose official results will be published by August 11, as it was estimated that several insurance companies would submit bids.

This means that Ayalon, a small player in the industry, will highly likely become the company that operates the group long-term care policy of Clalit, in which about 2.7 million people are insured, and which is de facto the largest group long-term care policy in the world. According to the tender conditions, only companies with experience in managing long-term care portfolios are eligible to submit bids, so in the current tender there were six relevant companies: Harel, Menora, Clal, Migdal, Phoenix, and Ayalon. All of the first five, as mentioned, decided not to submit a bid in the end.

The group long-term care policies of the four health funds are the only private policy that can be purchased today in Israel. Apart from it, every person of retirement age is also covered to some extent by the National Insurance Institute (Bituach Leumi), according to an income test. Each health fund has an agreement with an insurance company to manage the policy. Since 1998, Harel has managed the Clalit policy directly and indirectly, through its subsidiary Dikla. The other three health funds have an agreement with Menora.