"Insurance agents should be granted a license for investment management"
Sharon Reich, CEO of Ayalon Insurance & Finance, spoke during Calcalist and Ayalon's Investment Week about a regulatory solution for insurance agents, describing them as "drivers of competition." Regarding the Altshuler Shaham deal, he notes: "It is too early to tell what will happen."
“We are living through a challenging global period fraught with risks,” said Sharon Reich, CEO of Ayalon Insurance & Finance, speaking at Calcalist’s Investment Week, held in partnership with Ayalon Insurance & Finance. “In both the United States and Europe, yields are very high, yet there is no rush to buy. We are facing a period of global uncertainty that requires investment professionals who know where and how to invest and how to diversify portfolios. The US faces a high debt-to-GDP ratio, while Europe grapples with demographic challenges, including immigration and security concerns, as well as its own debt burden.”
And what about Israel?
“Israel is truly a unique case. Despite a multi-front war, uncertainty and internal divisions, the country’s key economic indicators have remained stable. The debt-to-GDP ratio is excellent, the shekel remains strong, unemployment is relatively low, and the high-tech sector continues to flourish.”
You are expanding into the provident fund sector. How do you plan to integrate this into your operations?
“We’ve made a strong start, with more than 1,000 agents and over NIS 2 billion in capital raised. It is clear that the market wants a professional entity with robust corporate governance, such as Ayalon. We see strong demand, and people are flocking to us.”
Are you considering entering the pension insurance sector?
“We are not active in that sector at the moment. The mandatory pension scheme, championed by the regulator, is a positive development. We see it gaining momentum, and it certainly should not be scaled back.”
Your parent company, WeSure, has entered into a major deal to acquire a controlling stake in Altshuler Shaham. Do you foresee any future collaboration?
“Right now, we are focused on our own business plans, and we are exceeding expectations. It is too early to tell what will come of that deal.”
A great deal of capital from younger investors, many of whom have never experienced a sharp market crash, is flowing into the market. Aren’t you concerned about what might happen when one eventually occurs?
“I think the fact that they are getting involved, showing interest and opening accounts, not necessarily with banks, marks a welcome shift. That said, they have not yet experienced a downturn. Every ‘TikTok expert’ is full of confidence because, so far, they have only seen success. I tell young people that there will be downturns in the capital markets, and the question is whether they have thought carefully in advance about where they have put their money.”
This year, Ayalon launched a major initiative involving Clalit’s long-term care insurance, a move most other companies shied away from.
“We assembled a professional team of Ayalon experts with experience in this field. A large number of participants submitted questions during the tender process, suggesting there was significant interest.”
There was once talk that apps would replace insurance agents. Yet in 2026, insurance agents appear stronger than ever.
“Agents play a crucial role. They must make insurance policies accessible to clients, as the terminology can be quite complex. An agent needs to manage a client’s financial affairs, build a comprehensive financial framework and structure a policy tailored to the client’s specific needs.
“However, while an insurance agent holds a license issued by the Supervisor of Insurance, they do not hold a license from the Israel Securities Authority to manage investments or mutual funds. This is an area that requires a regulatory solution.”
How can the issue of agents’ neutrality be resolved?
“Regulators, insurance companies and representatives of the agents need to sit down together and find a solution.”
