EMI Mortgage Insurance Enters Chareidi Sector
By R. Gil
Companies continue to view the chareidi public as an
attractive marketing target based on its potential for
personal growth. EMI, an Israeli mortgage insurance company
and a part of the worldwide AIG Group, has been active in
Israel since 1995. Now the company has decided to try to
penetrate the chareidi sector following in-depth market
surveys it conducted.
The company, which offers an attractive loan insurance
program, is considered a "cushion" for the banks, since it
allows mortgage banks to grant bigger loans. Bank loans are
normally in Israel limited to 60-70 percent of the value of
the property being purchased. The company allows borrowers to
take out loans of up to 95 percent of the value of the
apartment, by selling insurance for the 20-30 percent
difference while keeping premiums low.
The strategic move EMI has been formulating in recent months
is based on the high purchasing rate for apartments in the
chareidi sector, which is rising relative to the general
The company has recruited and trained chareidi employees and
hired the services of Netto Advertising to lead the move.
During the coming month the agency plans to run a high-budget
campaign throughout the chareidi media in addition to
activities and explanatory brochures at all mortgage bank
branches serving the chareidi public. The brochures were
modified to accommodate the desires of chareidi customers.
The company also has plans for cooperative agreements with
figures in the areas of real estate and banking.