Creating Incentives to Form Specialized Insurance Companies with Emphasis on Life Insurance Companies
Authors: Leili Niakan, Mojtaba Abed, and Mehdi Sameri
Coordinator: Insurance Research Center
Abstract
The low share of life insurance in the country's insurance industry is a structural and well-known fact. At present, more than 8 decades after the start of insurance in Iran, life insurance accounts for about 15.5% of total premiums produced, which compared to the global average of about 57%, shows a significant difference and gap, and therefore it is worthwhile for the insurance industry to make more efforts to bring the indicators related to life insurance to global standards. The inability of insurance companies to design and offer new and attractive life insurance products and the lack of specialized life insurance companies are among the most important reasons for this lack of progress, which the mechanism of establishment and development of these companies should be reviewed and executive proposals should be provided.
This study seeks to provide motivational solutions for the establishment of specialized insurance companies with special emphasis on life insurance companies. In this regard, after reviewing the theoretical foundations of the subject and the process of establishing a specialized life insurance company in the country, referring to insurance industry experts and considering various aspects such as human resource, investment return and economic justifiability of establishing a specialized life insurance company, technology and Macroeconomic status and conditions, the pathology of the formation of a specialized life insurance company in Iran has been studied in detail. In the following, by studying the process of establishment and activity of a specialized life insurance company in selected countries, strategies to increase the incentive to establish a specialized life insurance company in the country have been proposed.
Keywords: incentives, life insurance, specialized insurance company
Conditions and Requirements of Insurance Agents
Authors: Dr. Mahboubeh Aalaei, Mousa Mousavi, Faramarz Khalighi, Elham Sadat Mousavi
Coordinator: General Insurance Group
Abstract
Recent developments in the insurance industry, including the increase in the number of insurance companies and their agents, require the use of management decisions and appropriate strategies in order to develop the insurance industry. Due to the significant contribution of insurance agents in producing insurance premiums and the significant increase in their number in the past years, it seems necessary to pay attention to the conditions and requirements of their entrance and the activity.
In this regard, this research project aims to examine the regulatory framework of the activity of insurance agents in Iran and selected countries in order to diagnose and provide suggestions and solutions to improve the activity of Iranian insurance agents. In this project, the countries of India, Malaysia, Turkey, Canada and Iran have been examined. The results of the review and study of the laws governing the insurance industry of the selected countries, taking into account the similarities and contradictions as well as the statistics of the existing differences, are reflected in the fourth part of the research; In such a way that at first the issues that are mentioned in the laws and regulations of the four studied countries, but have not been considered in Iran's regulations, and then the differences in the laws and regulations governing the insurance industry of Iran with at least three countries, two countries and then only one country is mentioned. So that a variety of issues, including the necessary and basic conditions for obtaining an agency license, types of agencies, how to register applicants, the amount of hours and topics of training courses, the duties and powers of the insurance company and the agent against each other as well as against the policyholders and other beneficiaries, how the supervision of the good performance of agents duties was examined and studied.
After matching the mentioned issues with the conditions governing the insurance agents in Iran, proposals were presented to amend and review the by-laws governing those conditions and requirements. The most important proposal of this research is the integration of regulations number 48, 54 and 75, which has been proposed in the form of a proposed regulation consisting of 31 articles and 32 provisions. Finally, a constitution proposal for the establishment of a trade association of insurance agents and also the amendment of the training course guidelines for insurance agent applicants have been presented.
Key Words: Insurance agents, Conditions, requirements, supervision, good performance
Studying and Proposing Rules and Regulations for the Presence of Foreign Insurance Companies in Iran
Authors: Dr. Mahboubeh Aalaei, Dr. Nasrin Hozarmoghadam, Elham Sadat Mousavi, Dr. Fatmeh Amiri, Dr. Mahnaz Manteqipour
Coordinator: General Insurance Group
Abstract
With the beginning of the post-JCPOA (The Joint Comprehensive Plan of Action) era and the lifting of sanctions related to the country's nuclear program, Iran's economy is in a positive development. Undoubtedly, one of the most influential areas of the economy in any country is the insurance industry of that country. An industry that plays a significant role in the improvement and stability of the national economy.
It is obvious that one of the expectations of the insurance industry from the implementation of JCPOA is the entry of foreign insurers into the country and their maximum participation with the domestic sector in order to inject investment and transfer knowledge and technology to the body of the insurance industry. Therefore, it is necessary to clarify and facilitate the path of their entry and activity by setting the arrangements.
The purpose of this research is to examine the existing laws and regulations in the country in the field of entry of foreign insurance institutions along with the comparative study of the laws of other countries and to provide new proposals to facilitate the presence of foreign insurance companies in Iran and the entry of foreign investment. The comparative study includes the examination of laws related to the presence of foreign insurance institutions in three countries, China, Turkey, and India, which are more similar to Iran in economic, social, and cultural terms, and their experiences can be a practical guide for the liberalization of the insurance market of Iran. Also, in order to complete the results of comparative studies, the opinions of some experts in the country's insurance industry have also been collected and analyzed.
The results of this research also showed that foreign insurers and investors can be present and active in the insurance industry of Iran, but they face two basic challenges of regulatory vacuum and regulatory ambiguity. In this research, we proposed "Foreign investment regulations in Iran's insurance industry", which clarifies the process of entry and activity of foreign investors in the country's insurance industry.
Key Words: foreign insurance companies, regulations, entry, activity
Recognizing and Analyzing Iran's Reinsurance Market
Authors: Dr. Mahdi Mohammadi and Loba Malekian
Coordinator: Fatemeh Atatalab
Abstract
The insurance industry is considered as one of the major economic institutions and supports the activities of other institutions. Therefore, the efficiency of the country's insurance market will play a significant role in the growth and development of this industry. Reinsurance operations are a suitable mechanism for dividing and distributing risk. Therefore, creating the necessary platform of competition for the country's insurance industry requires that the structure of the trust insurance market also has the necessary efficiency. The purpose of the current research is to analyze the Iranian reinsurance market, examine its structure in terms of competition or monopoly, and study the challenges and identify the obstacles to cooperation with foreign insurers. According to this goal, the report of the current research project is organized in four sections. In the first part, the trend of risk acceptance and maintenance capacity was studied and also the statistical analysis of Iran's reinsurance market was discussed. The information used in this section was extracted from the financial statements of insurance companies and central insurance and the statistical yearbooks of the insurance industry during the years 2008 to 2014.
In the second part, the structure of the reinsurance market of Iran and 34 selected countries was examined in terms of competition or monopoly. In the third part, the challenges and obstacles of cooperation with foreign insurers were identified, and finally, in the fourth chapter, the summary of studies and suggestions were presented.
Keywords: Insurance, Reinsurance, Market structure.