Israel's compulsory automobile insurance industry has recently been commanding headlines. This industry, which deals with bodily injuries occasioned by the use of automobiles, currently insures 1.5 million vehicles and turns over nearly $1 billion a year in premiums.

The structure of the industry in Israel is sui generis and includes Avner, Ltd., an entity owned by all of Israel's insurance companies that shares liability with them for all policyholders. This study presents an elaborate review of the cartel-ridden structure of Israel's compulsory auto insurance industry and stresses the damage this structure has caused the Israeli public; analyzes the industry's shaky condition; and shows why the Israeli insurance companies are not liable for Avner's losses even though they own the firm.