Jerusalem, 3 November, 2026 (TPS-IL) — Israel’s Capital Market Authority issued a binding regulatory directive on Tuesday banning auto insurers from discriminating against policyholders based on geographic location or residential address.
The regulatory intervention follows investigation into reports that insurers routinely rejected coverage or imposed impossible “strict underwriting” hurdles on residents from specific areas, particularly peripheral communities, without empirical statistical justification.
Under the new rules, insurance companies are strictly prohibited from refusing coverage, demanding extra documentation, or inflating premium rates based solely on an applicant’s residential address.
Regulators emphasized that location-based risk pricing will only be permitted if an insurer provides rigorous statistical evidence proving elevated risk, ensuring equal access to motor vehicle coverage across all regions.