Competition in the comprehensive vehicle insurance market is continuing to grow. Elezra Holdings Ltd. (TASE:ALZR.B1) subsidiaryILD Insurance Co. (TASE: ILDH), said yesterday that it will offer a 20% discount on car insurance on privately-owned cars in households which also have a car from a leasing fleet.
ILD Insurance deputy CEO and head of non-life insurance division Jacob Orenstein said, "Recent years have seen an increase in the number of people using leased cars as well as the number of two-car families. So we believe that people like these who sign up for the offer and get the discount will benefit greatly."
Car insurance policies - both compulsory and comprehensive - are two of the insurance industry's main profitable lines of business, with an aggregate profit of NIS 173 million in the first half of 2007. However, recent years have seen an erosion in margins as a result of stiff competition between companies eager to sign up "quality" customers", a trend that has also benefited the general public.
ILD Insurance posted a profit of NIS 7.1 million on NIS 235 million in insurance premiums in January-September 2007.
Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2008
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