Competition limited by dominant positions of two main players

Life insurance products in Israel have undergone substantial changes in terms of the structure and conditions of the policies marketed to the public since 1 January 2004 in order to make them more transparent, limit the commissions, clarify pricing and charges, and to restrict “switching” by agents from one policy type to another in order to enhance commission

According to the insurance association there were a total of 13 life companies writing business in 2006. The number of foreign companies licensed to work and actually writing new business has declined from 27 in 1984 to two as at the end of 2006. These are Migdal, the leading life writer owned by Assicurazioni Generali from Italy, and AIG (ALICO) from the US. The Israeli life insurance market is in private hands with eight insurance sector companies listed on the Tel-Aviv Stock Exchange. There are two mutual associations.