Digital has changed insurance — and that is a good thing

There is no reason to miss the days when every document required an appointment and every comparison meant dozens of phone calls. Today, people can find information quickly, view policy documents, compare data and complete many actions independently.

Government tools are part of this change. Har HaBituach helps policyholders locate information about insurance products held with Israeli insurers. The Capital Market Authority also operates comparison tools such as Pension-Net and a management-fee calculator. Transparency and digital tools are now a normal part of the market — and a professional agent should welcome them.

But information is only the first step. The important question is what to do with it.

Where does the complexity begin?

Insurance is not one simple product. Policies with similar names may differ in definitions, waiting periods, exclusions, insured amounts, deductibles, renewal conditions, complementary coverage and claims procedures.

Your personal circumstances matter too. A single 27-year-old, a family with three children, a self-employed business owner and someone approaching retirement do not necessarily need the same arrangement — even if an online comparison displays the same list of products.

Overlapping insurance is not always a yes-or-no question

A digital system can help identify several policies. The next step is to determine whether the coverage is genuinely identical, complementary or designed to provide an additional benefit. Cancelling a policy simply because it looks like a duplicate can be the wrong decision if the terms have not been checked.

Pension planning is about more than investment returns

When comparing pension funds, historical returns are only one part of the picture. Management fees, investment track, insurance coverage, family circumstances, salary, age, continuity of contributions and other factors may matter. Pension-Net can help compare data, but an individual decision still needs context.

What should a good insurance agent add in the digital age?

1. Start with your life, not a product

The first question should not be “Which policy should I sell?” It should be who is sitting in front of us: family, work, income, commitments, assets, existing savings, goals and concerns. Only then can we identify which issues deserve attention.

2. Bring order to documents and systems

Most people do not need another PDF. They need help understanding which parts of the documents matter. A professional review connects the information into one clear picture: what exists, what may be missing, what may be unnecessary and what deserves a closer look.

3. Explain in language you can use to make a decision

You should not need to become a lawyer or an actuary to understand a decision that affects your family. If a product, coverage or proposed change cannot be explained in plain language, the conversation is not finished.

4. Look at the terms, not only the premium

A lower-priced offer can be excellent. It can also contain differences that are easy to miss. The right comparison considers what is covered, what is not covered and whether the arrangement fits the need — and only then compares prices.

5. Be available when circumstances change

Marriage, a new child, a mortgage, becoming self-employed, a salary increase, changing jobs, buying a home or approaching retirement may justify reviewing your arrangements. An insurance and pension portfolio is not a document you sign once and forget.

6. Help when a claim arises

When a claim occurs, people usually have less time and energy to learn unfamiliar procedures. An agent who knows the file can help explain which documents may be needed, whom to contact and what the process looks like. The agent does not replace the insurer and cannot guarantee an outcome, but can provide a professional point of contact during an unfamiliar process.

Digital-only service or professional guidance?

Yes, some people can manage without an agent. They prefer to handle everything themselves, read policy terms, understand the products, monitor changes and know whom to contact when necessary. For simple products and uncomplicated circumstances, buying directly may be appropriate.

The point is not that everyone must use an agent. The question is whether you understand the full picture and feel able to manage it over time. As the number of products, family members, commitments, pension savings, self-employment risks or interactions between coverages grows, the value of a professional who understands the overall picture may grow too.

Three mistakes worth avoiding

• Buying on price alone. A low price is an advantage only if the coverage still meets the need.
• Cancelling before checking. Before cancelling an existing policy, understand what you would lose, whether the terms could be restored and what rejoining might involve.
• Assuming an old policy means everything is settled. Life changes, and products and terms can change too.

How do you choose an insurance agent?

The choice should not begin with how quickly you can get a quote. Start with a few practical questions:

• Does the agent hold an appropriate, current licence? You can check the official Capital Market Authority register.
• Does the agent explain what you may not need, rather than only what you could buy?
• Are alternatives compared and explained, rather than presenting only a price?
• Is it clear whom you contact if a claim or a change arises?
• Is there a process for periodic reviews, rather than a one-time sales conversation?
• Does the agent clearly explain the nature of the service and any relevant affiliations?

Official tools worth knowing

These tools are important and form part of a sound decision-making process. A professional agent should not replace transparency — but can help you use it effectively.

• Capital Market Authority — search for licensed agents and consultants.
• Har HaBituach — insurance portfolio information.
• Pension-Net — pension fund comparison data.
• Management-fee calculator.

About the author

Maxim Krasovitsky is the director of MAXIMUS and a licensed pension insurance agent in Israel, licence no. L-00132932.

This article is general information only. It is not personal insurance or pension advice, a recommendation to buy an insurance or pension product, investment advice or a promise of any result. Individual suitability depends on the client’s circumstances, the agent’s licensed scope and applicable law.