"After the war there'll be optimism and investment opportunities and we will be part of the constant growth"
"After the war there'll be optimism and investment opportunities and we will be part of the constant growth"
Sharon Reich, CEO of Ayalon Insurance, said at Calcalist's Economy of Tomorrow conference held in collaboration with the Bank of Jerusalem and BDO that car thefts, which raise insurance prices, should be dealt with on a national level: "Even though the thefts lessened due to the war, we need to understand that they will resume after it"
Sharon Reich, CEO of Ayalon Insurance, believes that despite the difficult times in Israel, the local market is robust enough, and continues to provide opportunities.
"The war is a challenging time for the country and the capital market is very important, certainly for insurance companies that invest in the capital market. In our opinion there is an opportunity in Israel right now. Prices are low and we know that the war will end, after a war there is optimism, there are opportunities to invest. The market may take off in a few days and in our opinion this is a time to be there," Reich said in a conversation with Irit Avisar, at Calcalist's Economy of Tomorrow conference held in collaboration with the Bank of Jerusalem and BDO.
The war affects the world of insurance. Reinsurers abroad want to exclude war cases in Israel. Should the state intervene?
"Reinsurance is very important to the insurance companies and the insurance companies in Israel are strong, their decisions are made at the macro level with a very sober view of the global arena. What happens in Israel will challenge us. I think we have to see how we will hold discussions on the issue and it is too early to know. There is now a dialogue with the state and this is important.”
There are sharp price increases in car insurance. Why did this happen? And what will happen next?
"The automobile sector is competitive and there is a battle between the insurance companies. There is a lot of transparency in this sector and the competition erodes the prices. During the pandemic, prices fell because people drove less, thefts also fell when everyone was dealing with the pandemic.
"After the pandemic, spare parts became more expensive, among other things, because of the increase in global shipping rates. The number of trips also increased after the end of the pandemic because the Israelis returned to the roads, and at the same time car thefts also increased.
"After that, the insurance companies had to raise prices because they money in car insurance in 2023. The price increases were necessary and there is no doubt about that. And it will continue, but not with the same intensity, because car thefts are significant - they must be dealt with at the national level. Although the thefts lessened due to the war, it should be understood that they will resume after it. Insurance companies don't raise prices for no reason."
If so, is another increase in car insurance prices to be expected?
"In the third quarter of the year there will be stabilization, but yes, until then there will be an increase, that's what we believe."
Ayalon has undergone significant changes in the last two years, including a change in ownership, how does this affect the company?
"Ayalon is strong and stable and growing and in the last two years we have become a company that cannot be ignored in the capital market. We have changed owners, we have changed management and we have a business focus, excellent human capital and the company is very strong and a leader in the insurance sector.
"Today our fabric is an excellent fabric based on synergy between digital work and the more traditional and more personal areas of the insurance world. There is no major deal in the Israeli economy that does not go through us. Ayalon today is an interesting company with a turnover of almost NIS 3.5 billion and we are constantly growing."
What is your synergy potential with the weSure insurance company?
"This is a digital company that has acquired a traditional company and we want a relationship with every insured person. But it is also important to remember that there are areas where dialogue is actually important. One does not get up in the morning and buy health insurance digitally, one needs an agent to provide service. Therefore, this combination of digital and traditional is a winning combination."
