Haaretz News
Published 12:03 18.08.11
Latest update 12:03 18.08.11
By Tali Heruti-Sover and Noam Bar
Arab-Israeli and Palestinian businessmen have joined forces to develop an insurance company that will compete in Israel's insurance market and appeal to the Arab population in the country.
Initial estimations suggest that the company will need a capital investment of NIS 60-90 million, in accordance with the independent capital requirements of all Israeli insurance companies.
Tarek Bashir, Israeli-Palestinian insurance
Lawyer and Accountant Tarek Bashir
The partnership includes three business groups - one Israeli and two Palestinian – each of which will have equal holdings in the insurance company, and have already committed to providing their share of the required capital investment.
The two Palestinian partners are Al Quds Holding and Wataniya Insurance Co. (also known as National Insurance). The Israeli partner is being led by Lawyer and Accountant Tarek Bashir, who recently left the Herzog, Fox & Neeman law firm, and was among the initiators of the enterprise.
At first, the insurance company will focus on elementary insurance, car insurance and property insurance, and may broaden its scope in the future to other areas, like health insurance and life insurance.
According to Israeli insurance companies, the portion of insured Arabs among Israeli insurance companies is similar to the rest of the population, such that not one of the large companies are particularly exposed to the Arabic population. Therefore, if this initiative succeeds, all of Israel's existing major insurance companies will be equally affected by its impact. However, the small insurance companies – who tend to appeal to niche markets - are most likely to feel the blow.
Associates of the insurance company's initiators pointed out the language barriers and cultural differences that impact the level of service and treatment insured Arabs receive from Israeli insurance companies. According to the associates, there is a reason why this insurance company will be established in a full Arabic atmosphere, as opposed to an insurance company that appeals to an Arab market, but is still under Jewish ownership.
Israeli insurance companies said they do not see the enterprise as a threat just yet. "I don't think such an initiative will succeed. What determines where customers go is the price, not the people behind the company," said a senior staff member of one of Israel's largest insurance companies on Wednesday. Staff of other major Israeli insurance companies added, "Companies tend to treat the religious (Jewish) and Arabic sectors as communities that require special attention. You can't be too sure that they experience language difficulties – most of them know the Hebrew language exactly like we do. In any case, what matters most to the insurance customer is not the company itself, but rather the insurance agent that works with him or her. There are many Arab and Jewish insurance agents that specialize in the Arabic sector and are very familiar with it.
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