The Auto Repair Association in Israel submitted a petition to the Supreme Court yesterday (Wednesday) seeking to overturn the Capital Market Authority’s fundamental ruling regarding auto-parts pricing. In an immediate decision issued the same day, the Court ordered the Association to explain why it chose to file a new petition instead of amending the existing one. The Association must respond by December 10, 2025.
This is the third petition. The original petition was filed in March 2023 against the Capital Market Authority and the Ministry of Transport. In July 2024, the Supreme Court dismissed the petition, ruling that the matter should be heard in the Administrative Court — which later returned the case to the Supreme Court.
In November 2024, the Association petitioned again, with a hearing held in January 2025 and another hearing scheduled for January 2026. It should be noted that in all petitions, the Supreme Court denied requests for a temporary freeze of the regulator’s policy.
At the core of the current petition is the Capital Market Authority’s September 2023 ruling, which approved insurers’ policy of deducting the cost of parts (beyond the price the insurer can obtain from a supplier), provided that full disclosure is given to policyholders.
According to the petition, the Association claims that this mechanism has created a distorted economic dynamic in which insurers exert complete control over parts prices and insurance payouts — enriching themselves at the expense of the public and especially independent garages that are not part of insurer-affiliated networks.
The petition further argues that regulatory decisions by the Capital Market Authority have caused severe harm to repair shops and to all auto insurance policyholders. It also alleges that Ohad Ma’udi, who served as a senior deputy at the Authority at the time, acted in favor of insurers and was later appointed to a senior role at The Phoenix. It should be noted that Ma’udi completed the full legally mandated cooling-off period — one year, and even longer — before joining Phoenix.
Related Reading
*Supreme Court Hearing on the Repair Association Petition: Justice Kanfei-Steinitz to State Representatives — “The policyholder is expected to negotiate parts pricing with the garage, and you think that benefits them?” (06.01.25)
* Sharp Criticism of Insurers | Transport Minister Miri Regev Claims: “Insurers price auto parts at 200% of their real value to justify outrageous premiums” (21.04.25)
* Supreme Court Rejects for the Third Time the Repair Association’s Request for a Temporary Injunction Freezing Auto-Parts Deduction Policy (21.05.25)
The petition comes against the backdrop of turmoil in the motor property insurance market. On May 1, a wide-scale reform of the auto-parts market was scheduled to take effect, under which the Ministry of Transport was expected (based on its prior announcement) to approve regulations requiring appraisers to assess repair costs based on market prices for replacement parts — and not on the official price list (a gap of tens of percent).
At the last moment, Transport Minister Miri Regev declined to sign the regulations and launched a sharp attack on insurers, stating:” “Insurers price parts at 200% of their real value to justify outrageous premiums.”
It should be noted that while some insurers do hold minority stakes in parts suppliers, their market power is extremely limited compared with the dozens of suppliers in the market, and Regev’s claim that insurers “inflate” parts prices is neither substantiated nor backed by evidence.
Furthermore, two days ago, Capital Market Authority Commissioner Amit Gal sent letters to numerous insurers, requiring them to update their motor insurance rates by April — otherwise they will be barred from selling motor insurance.
