Jerusalem, 27 May, 2026 (TPS-IL) — After a long struggle to protect public funds that lasted about 15 years, the court adopted the position of the Capital Market Authority in full, and ruled on the disputes at the heart of the settlement agreement in the class action lawsuit known as the “Policy Factor” affair.
At the center of the lawsuit was the question of whether insurance companies were allowed to collect management fees, known as “policy factors,” from the premium in life insurance policies combined with savings, without the consent of the insured. Following the decision, the public will be refunded an amount of about one billion shekels.
The lawsuit itself was decided by the court in 2024, but since the ruling, various disputes have arisen regarding the manner in which the ruling was implemented. These disputes put tens and even hundreds of millions of Shekels of the compensation amount already awarded in favor of the savers at stake, and they led to a significant delay in the payment of compensation to the public.
The court rejected the companies’ attempt to reduce the scope of the compensation by many tens of millions of Shekels, and determined that the refund amount (42% of the past collection) will be calculated from all of the savings components built into the insured’s basic policy, and not just from their share.
The court refused to grant a 5-month extension for making payments, and determined that the refunds will be made within 75 days at the latest. In addition, for the period of delay, the compensation will be increased to 50% of the actual collection, and will be paid in addition to the full profits (returns) that the policies generated at that time, without prejudice to negative returns.