Capital Market Authority restricts discounts on life insurance

In depth

The Capital Market Authority has published directives requiring insurance companies to maintain the discount rate on life insurance (risk) policies for at least ten years. According to The Marker, the directives are intended to make it easier to compare prices and to prevent a situation in which policyholders discover in hindsight that the discount has eroded.

According to Maariv, the directives will take effect in February 2027 and do not guarantee that the monthly payment will not rise. According to Bizportal, the directives will not automatically apply to existing policies, and the Authority acknowledges that new policyholders may pay more in the first years. According to Globes, the Authority originally wanted the discounts to last for life, and the current directive comes after insurance companies objected to the original draft.