Israel Capital Market Authority Puts an End to Discrimination in Car Insurance Based on Place of Residence

In depth

The Capital Market Authority has published a final position prohibiting insurance companies from refusing to insure drivers, demanding stricter requirements, or pricing policies based on place of residence. According to Calcalist, the decision comes almost two years after the draft was published, following complaints about the blocking of insurance purchases in Arab localities and peripheral areas.

According to Calcalist, insurance companies will be able to take area of residence into account only if they prove through statistical studies that it affects insurance risk, and it is not clear whether such a link can currently be proven. According to TheMarker, pricing by area of residence will be prohibited unless it is shown to be based on statistical data indicating increased risk.