The Capital Market Authority, headed by Dr. Moshe Barkat, has issued a circular for public review, in which it intends to prohibit the cancellation of policies and reporting obligations to the customer, in case the agent works exclusively with certain insurance companies. From their income comes from one insurance company so that the insured can assess the degree of objectivity of the agent.
The background to the circular distributed by the Authority stems from the data it publishes, according to which about 85% of insurance agents work with two insurance companies exclusively, thus preventing the insured from receiving the best offer from all the insurance companies.
The Commissioner of the Capital Market and Insurance Authority, Barkat, explained that: “An objective sale process is in the common interest of all parties involved – insurance companies, insurance agents and, first and foremost, the insured public. “Make free and informed decisions that match their needs. The Capital Market Authority will continue to place emphasis on promoting fairness and competition in the insurance market and maintaining the security of the insured public.”
The Bureau of Insurance Agents, on the other hand, is outraged by Commissioner Moshe Barkat’s decision: “With a single insurance company, they claim that it impairs objectivity and competition. How does this fit in with the license they themselves approved for Max to work only with AIG? Doesn’t the right hand in the PA know what the left hand allowed?” How does the issue of objectivity work out when Isracard is already at the door to obtain an insurance agent license? We will study the draft and respond to it. ”
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