Israel Post aims to sell financial services in Q3
As the privatization of Israel Post Company Ltd. gathers steam, the company plans to begin offering financial services, and market mutual, provident and pension funds at post offices. Israel Post also wants to begin selling non-life insurance, such as compulsory vehicle insurance and home insurance, by the third quarter of this year.
Israel Post predicts that the ministers of finance and communications will sign the permit allowing it to provide financial services by the end of June, so that it will be able to begin selling financial products during the fourth quarter. However, because Israel Post cannot provide financial advice for the sale of these products, and lacks a permit to provide it, it will only serve as a sales and clearing platform.
The tender for the sale of insurance at post offices was published a month ago, and the deadline to submit bids is today. Israel Post believes that the tender results will be published in May. Israel Post plans to begin selling insurance at only 50 branches of the Postal Bank. If the venture succeeds, Israel Post plans to sell home insurance, and much later, health insurance, including to foreign workers.
Insurance agents and companies will handle claims, and Israel Post will bear no responsibility. If and when the Postal Bank becomes a regular retail bank, it will have to stop selling non-life insurance, which is banned for banks.
