Insurance Chiefs Clash Over Agent Commissions at Eilat Conference

Chief executives of four major Israeli insurers disagreed over insurance-agent compensation and transfers between pension and savings providers at the Insurance Agents Bureau’s annual conference in Eilat on Monday. The panel brought together the heads of Clal, Migdal, Harel and Menora Mivtachim, alongside bureau president Moshik Ben Porat, before 600 agents. Clal CEO Yoram Naveh criticized excessive switching between providers, identifying agent compensation as one of several causes. He argued that frequent transfers could steer investment managers toward tradable assets at the expense of alternatives and infrastructure. Migdal CEO Ronen Agassi said remuneration should cover continuing customer service as well as the initial sale. “Payment to the insurance agent should reflect both a sale and service over time,” Agassi said. Harel CEO Nir Cohen defended privately negotiated compensation arrangements and opposed intervention. Menora Mivtachim CEO Michael Kalman argued that pension decisions stretch over decades and that professional investment choices matter more than examining remuneration or fees alone. Ben Porat defended agents’ advice and said he rarely transfers plans unnecessarily. He proposed evaluating whether agents retain the customers they bring to an insurer, then rewarding them for maintaining those portfolios.