Israel's 2025 Service Index Reveals Leaders and Laggards in Insurance and Pensions

Choosing an insurance company often comes down to the price of the policy, yet service quality only becomes truly apparent when a claim is filed or customer support is reached. The 2025 Service Index published by the Capital Market Authority offers a glimpse into the performance of insurance and pension management firms, revealing that excellence varies significantly across different sectors.

Car Insurance: Direct Insurance Leads, AIG Jumps

Comprehensive and third-party car insurance remains a core sector, handling roughly 416,000 claims in 2025—about 215,000 from policyholders and 201,000 from third parties—with total payouts reaching approximately ₪9 billion. Scoring is based on a 100-point scale evaluating claims handling, customer satisfaction, public complaints, response times, and digital services.

Direct Insurance tops the car insurance sector with a score of 88, followed by Libra and Ayalon at 87. At the bottom of the table sits WeSure with 78, preceded by Hachshara with 79.

AIG demonstrated the most notable upward shift, climbing from tenth to fifth place, while Shlomo Insurance jumped from eighth to fourth. Significant disparities were also recorded in phone waiting times, with Shlomo Insurance averaging just 35 seconds compared to Migdal's 3 minutes and 59 seconds.

Health Insurance: Shifts at the Top and Bottom

In health insurance, firms processed about 166,000 claims and disbursed roughly ₪2.94 billion. Direct Insurance captured the leading spot this time with a score of 85, dethroning the previous leader. Clal rose to second place with 82, followed by Harel, AIG, Ayalon, and Phoenix at 81. Menora sat near the bottom with 75, while Migdal finished last with 74. Telephone wait times ranged from 1 minute and 6 seconds at Direct Insurance to 4 minutes and 25 seconds at AIG.

Home Insurance: Agricultural Insurance Soars to First

Home insurance is a comparatively smaller sector, concluding roughly 29,600 property and contents claims in 2025 with total payouts near ₪1.4 billion. Agricultural Insurance marked a dramatic turnaround by surging from fourth to first place with a score of 92. Phoenix ranked second and AIG third, while Menora landed at the bottom with 76.

Travel and Life Insurance

Travel insurance generated high claim volumes—around 175,000 completed claims totaling ₪0.5 billion—surpassing health insurance claim counts. PassportCard led the index with 95 points, followed by Direct Insurance (93) and Phoenix (92), while Migdal lagged at the bottom with 79.

In life insurance, claim counts were lower at 4,670, but financial volumes reached ₪2.56 billion. Ayalon took first place with 90 points, whereas Harel finished last with 77 points. Harel also recorded the longest telephone wait time in this sector at 4 minutes and 30 seconds, compared to just 54 seconds at Ayalon.

Pensions and Provident Funds

In pension savings, Meitav climbed from fourth to first place with a score of 83, tying with Clal. Phoenix surged from sixth to third with 82 points, while former leader Menora slipped to 80. Infinity remained at the bottom with 73 points despite recording a six-point improvement.

Meanwhile, in provident funds, Yelin Lapid maintained leadership for the 12th consecutive year, followed by Meitav and Analyst.

Methodology and Limitations of the Index

The index methodology allocates 40% of the score to claims processing speed and approval rates, 30% to customer satisfaction, 15% to public complaints, 10% to response times, and 5% to digital tools. For pensions, customer satisfaction commands a heavier weight at 55%.

Despite its scope—analyzing over 902,000 claims and thousands of complaints—the index suffers from a major drawback: timing. The 2025 results were published only in October 2026. The Capital Market Authority explained that the transition to the IFRS17 accounting standard caused a two-month reporting delay, though future releases are expected to return to earlier schedules. While the index remains valuable for tracking multi-year patterns, its delayed publication limits its utility for immediate consumer decisions.