The insurance pension area changed and is changing its phases (2004 is a transitional period)
during recent years when the overall result of the changes in
the life expectancy and retiring age, the reforms in pension
funds at the end of 2003 and early 2004 (being a completion of the 1995 reform), the
structural changes in the insurance companies programs, which
were expected in the subject of taxation, the obliterated boundaries
of the various actors in the capital market, the amendments
in the investment rules and provisions and the influences of all these on the
array of working relations in Israel are that the area has turned and is turning into a
material change from sales industry into an industry of service and financial
management competing on know how, service and revenues.
The January 2000 Arrangement Law with its taxation chapter in themselves constitute a material change
and shall always be a notable changing point, as they state a principle of free choice for the
retiring age as opposed to principle of free choice at the age of retiring,
meaning, the employee joining the arrangement is presently just the beginning of the process and
not its ending.
One of the results is, that not only the behavior and its characteristics and
those of the employers and insureds has changed but the structure and the nature of the operation
of the insurers and services providers changed and are likely to keep changing more and more.