Sydney Trips and Generous Commissions: Ayalon's Plan to Capture the Provident Fund Market
Insurance company Ayalon is returning to the provident fund sector with an ambitious goal of managing 100 billion shekels within five years. To achieve this, the company is aggressively targeting insurance agents with high commissions and incentives, including luxury trips to Australia.
Four years after exiting the sector, the insurance company Ayalon is returning to the provident fund (kupat gemel) field, and it intends to do so on a grand scale. Globes reveals that the company plans to leverage its network of insurance agents, offering them handsome payments and even a luxury vacation in Australia. As part of its aggressive market entry, Ayalon has launched a campaign describing its representatives as "finance killers" and labeling its products as "blockbuster provident funds," albeit without any commitment to future returns.
Ayalon's Ambition: The Next "Mor"?
Tamir Hershkovitz, the company's investment division manager, has set a clear goal: Ayalon aims to manage 100 billion shekels within five years (compared to the 21 billion shekels currently managed across all instruments). In essence, Ayalon seeks to replicate the success of the investment house "Mor," which utilized high returns and aggressive capital raising to become one of Israel's largest financial entities.
Sharon Reich, CEO of Ayalon, states: "The company has been dynamic and competitive in recent years. Our excellent performance in savings policies—where we have ranked first over the last one, three, and five years—has allowed us to raise 700 million shekels monthly, leading to our decision to enter the provident fund sector." Over the past three years, Ayalon has yielded a return of nearly 50% in its general track, compared to an industry average of 42.2%.
The Advantage of Smallness
Reich remains optimistic about the market's potential: "The Israeli public holds 7.5 trillion shekels, half of which is not optimally invested. We will provide value through a combination of strong returns, professional investment management, and agents who tailor solutions to client needs."
Ayalon's recent success in savings policies is largely attributed to the "advantage of smallness." As of the end of the first quarter of 2026, Ayalon managed approximately 8.7 billion shekels in savings policies, allowing it to maneuver more easily between positions than larger institutions. The company's assets under management have jumped by 80% in just over two years.
Targeting Insurance Agents
To storm the provident fund market, Ayalon is focusing on the insurance agent channel. According to information obtained by Globes, Ayalon is expected to pay agents scope commissions (one-time recruitment fees) of 7,000–9,000 shekels per million shekels recruited. While Ayalon claims these figures are lower, internal documents suggest higher costs, which could lead to tens of millions of shekels in expenses before the company becomes profitable. Market sources estimate that reaching the break-even point could take 3–5 years.
Beyond commissions, Ayalon has launched a campaign for agents: those who recruit 16 million shekels by the end of November (with up to 6 million in new provident funds) will win a trip to Sydney, Australia.
Management Fees
Regarding management fees, documents show that clients making fixed monthly deposits will pay a relatively high fee of 1%. Those choosing one-time deposits of up to 150,000 shekels will be charged 0.75%, a rate that decreases as the total accumulation grows.
Financial planner Oren Barsky notes: "Everyone is betting on the 'Mor 2' narrative. As long as they remain small, they can maintain high returns and minimize errors. They may not be 'Mor 2,' but they will certainly be 'Mor 1.5.'"
