Israeli Insurance Agent Commissions Hit Record 13.23 Billion NIS in 2025
Israeli insurance agents earned a record 13.23 billion NIS in commissions in 2025, a 10% annual increase. Capital Market Authority Commissioner Amit Gal warned of potential conflicts of interest due to high commission rates.
Insurance agents in Israel earned a record volume of commissions paid by policyholders in 2025. According to a report by the Capital Market, Insurance and Savings Authority, the total commissions paid to licensed agents reached 13.23 billion NIS, representing a 10% increase within a single year. Since 2022, commissions have surged by 2.8 billion NIS, or 27%.
Health Insurance Commissions Skyrocket
The sharpest increase was recorded in health insurance, where commissions jumped by 25% to 3.59 billion NIS. In provident funds and pensions, commissions rose by 19% to 3.14 billion NIS. In general insurance, which primarily includes car and home insurance, commissions grew by 3% to 3.63 billion NIS. Conversely, life insurance commissions saw a 3% decline, falling to 2.87 billion NIS.
The surge in health insurance commissions cannot be explained solely by the rise in premiums driven by population growth and increased public interest in asset protection. The commission rate as a percentage of premiums rose from 18.57% in 2024 to 21.97% in 2025. This means that nearly 22 out of every 100 NIS paid by policyholders went directly toward commissions. At Ayalon Insurance, this rate jumped from 16.33% to 27.15%, while at Clal Insurance, it stood at 26.59%.
Industry Growth and Conflict of Interest Concerns
Alongside the expansion of Israel's pension market, which manages over 1.1 trillion NIS, the number of pension insurance agents rose by 3.6% to 11,782. The number of active insurance agencies grew at a more moderate pace of 0.8%, reaching 2,138. The Authority did not provide a direct explanation for the commission spike but estimated that the growing number of agencies is linked to "the attractiveness of insurance brokerage activities and the level of profitability in the sector."
However, the Commissioner of the Capital Market, Insurance and Savings Authority, Amit Gal, warned that reliance on intermediaries and current compensation structures could create conflicts of interest. Consequently, the Authority has expanded reporting requirements regarding commissions, direct payments from clients, and outsourcing agreements.
While insurance agents act as intermediaries to help clients choose coverage, compare products, and handle claims, they are not necessarily objective advisers. Since insurance companies usually pay their fees, which are embedded in the premium, high commission rates can incentivize agents to recommend the most profitable product for themselves rather than the best or cheapest option for the client.
Stalled Reforms
This concern is particularly acute in health insurance, where clients risk overpaying due to double coverage or remaining in expensive, unadjusted policies. In recent years, the Capital Market Authority attempted to promote several reforms aimed at increasing transparency and assessing agent objectivity. One such initiative was the "Objective Agent" reform, which would have required agents to declare how many companies they work with and whether they have preferential ties based on commission structures. However, these initiatives have not yet materialized into binding regulations.
