A competitive environment must be created in the insurance market

According to the monetary financial news quoted by IRNA, Majid Behzadpour, General Director of Central Insurance, stated about the lack of diversity of insurance products in the country: In the past few years, more than 50 new products have been licensed by Central Insurance in certain areas such as insurance Life, life and so on.

He continued by stating that the insurance industry has not yet achieved its position: in the world, the three main axes of economic development; Insurance is a bank and a stock exchange, and the insurance industry has a special place, but in our country, this industry has not yet achieved the necessary rank, and we must try to define this position for the insurance industry.

“Although the insurance industry has developed, but especially in the field of information technology and ICT (IST), insurance has not yet effectively marketed an acceptable product,” he said. If we can more easily access, we can develop insurance penetration and on the other hand, apply reassurance, by developing the IT infrastructure in monitoring.

He added: “Another product that will be unveiled in the coming months is Takaful; Although this product has been in insurance for many years, but this year we plan to offer a product under this title. Whether an institution licenses or offers a product under this heading is still under consideration.

Behzadpour continued: “We consider one of our responsibilities to help some of the problems and difficulties that are felt in the community.” In the field of treatment, various programs are being seriously considered and the results will be announced soon. One of the necessary measures is to pay attention to reforming the structure and productivity of most investments in insurance, which can be a better support for social services such as community health services, which is also very useful for the insurance industry.

He stressed: “Although the insurance industry has a serious presence in treatment, but I believe we can help the government, especially in the field of health and reduce the direct costs of the people in this sector.”

Regarding the supervision of insurance companies and the issuance of licenses, the Governor of the Central Bank said: “According to the law, the main duty of the Central Insurance is supervision, and during these years it has tried to perform this duty efficiently.” Naturally, the scope, scope and scope of central insurance supervision becomes wider as a result of the expansion of the supervised collection, including insurance companies and representatives of insurance companies, brokerages and assessor institutions.

He said that the supervision of the Central Insurance is not a weak supervision, but there is a lot of work to be done, adding: “One of the planned programs is to strengthen the supervision and the first discussion is to make the supervision smarter. To closely monitor financial indicators.

Behzadpour, stating that in discussing the number of insurance companies, the question is always what is the appropriate number of insurance companies, said: “According to a study conducted by the Insurance Research Institute, it has reached almost 50 companies in the current space of the country. I do not have insurance companies, it determines the type of activities, the application of intelligent supervision and the creation of a competitive market under the control of the number of companies.

He added: “According to the amendments to Articles 1 and 2 of the Law on the Implementation of Article 44 of the Constitution, it is stipulated that licensing cannot be prevented due to market saturation, ie there is a legal obligation that we can not create a serious obstacle to licensing.” It is called in competition.

Growth of insurance penetration in the last 10 years

The Director General of Central Insurance emphasized: If the indicators of proper competition in the insurance market are defined and its regulations are formulated, we will automatically reach the appropriate number of insurance companies; But in the current situation, we have tried to have a serious review of the licensing of insurance companies in order to determine the task at an acceptable time.

Emphasizing that we must leave room for new investment, he said: “The insurance industry has grown more than other sectors.”

Behzadpour said: The insurance penetration rate in the last 10 years has increased from 2% to 2.57%, which shows the good growth of this industry in recent years, but we have a long way to go to reach the set plan, which is with the plans made. We hope that people will see acceptable development in this industry.