Yonel Cohen: The systems doesn't work.
"The system doesn't work," said Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL) CEO Yonel Cohen about the level of prices and agents fees in Israel's pensions savings market. He was speaking at a seminar entitled "Activities of an Agent in a Changing World," which was organized by the Institute of Insurance Agents.
He said, "Something is not right with insurance companies. 90% of policies did reach to the long-term, and therefore don't repay their costs. In a check that I made out, I found that a customer has to pay a 2.1% handling fee from the accumulated amount so that the present system of insurance and pensions will balance out. No customer will agree to this."
Deputy Minister of Finance MK Yitzhak Cohen spoke about the management fees in the pensions market but from the opposite point of view. He expressed himself strongly when he said, "I am satisfied with the ongoing growth in collecting management fees from provident fund members and it is my intention to examine, with the professional bodies involved, what instruments we have at our disposal to halt this trend."
Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2009
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