A supervisory approach based on intelligent supervision
The member of the board of directors and the deputy supervisor of the central insurance said:
According to the financial news report, the central insurance supervision deputy has placed intelligent supervision with the aim of customer orientation and increasing the satisfaction of the countrymen with the services of the insurance industry, especially when an accident occurs, along with the strengthening and development of information and communication technology tools.
Speeding up the claim payment process is one of the components of smart monitoring and we are trying to gain the satisfaction of insurance industry stakeholders by implementing projects based on digital (online) technologies such as the intelligent system for integrating the process of handling and paying claims in this area.
The insurance industry is one of the most popular industries in the way that it has paid more than 52 million claims to the people last year, and this shows the general trust of the society in the services of the insurance industry. Therefore, in order to maintain and increase this trust, we must minimize the percentage of possible violations and errors by insurance companies with serious supervision.
Financial supervision:
Among the important activities of this department, the following can be mentioned:
Examining the compliance of types of non-life and life insurance reserves with “Technical reserves regulations of insurance institutions” (No. 58) and “Life and pension insurance regulations” (No. 68)
Examining the adequacy of reserves of the third sector in the implementation of Article 58 of the “Compulsory insurance law for damages caused to third parties due to accidents caused by vehicles” to ensure the adequacy of the reserves of the said sector
Supervising the holding of general and extraordinary meetings of insurance companies based on the relevant provisions of the Trade Law, “Regulations of Legal Reserves of Insurance Institutions” (No. 61)
Examining and calculating the financial solvency of insurance companies and announcing it publicly in the central insurance information base based on “Regulations on how to calculate and monitor the financial solvency of insurance institutions” (No. 69)
Monitoring the assets, investments and claims of insurance institutions based on the “Investment Regulations of Insurance Institutions” (No. 97) and “Regulations on Identification and Classification of Claims of Insurance Institutions and How to Calculate Their Reserves” (No. 101)
Examining the shareholding composition of insurance companies based on the “Regulations on the Establishment and Activity of Non-Governmental Insurance Institutions” (No. 100) and Article 33 of the Law on the Establishment of the Central Insurance of Iran and Insurance and examining and confirming the qualification of audit institutions to act as auditors and legal inspectors of insurance institutions based on Article 12 of Regulation No. 100
Technical supervision:
Technical supervision of insurance operations includes a wide range of activities such as:
Monitoring compliance with general and specific criteria in determining the premium of each insurance field, including aircraft, ship, engineering, and other insurance fields.
Monitoring the good implementation of several regulations related to “General conditions of insurance policies for property, persons and car body”
Dealing with part of the provisions of the regulation “How to assign compulsory reinsurance and the amount of participation in its profit” (No. 76), which requires insurance companies to obtain rates and conditions before issuing insurance policies with high capital/commitments.
Monitoring the implementation of the “Protection of the Rights of Insurers, Insured and Owners of Their Rights” regulations
Supervision of the by-law “Regulations related to joint insurance” (No. 95) in which the conditions and duties of the leader and members of joint insurance are determined.
Supervision of reinsurance affairs based on the provisions of Regulation No. 55 and its supplements
Supervision of the correct implementation of the Law on Compulsory Insurance of Damages Caused to Third Parties by Accidents Caused by Vehicles” approved in 2015 by the Islamic Council and numerous by-laws under it.
Monitoring the provisions of Regulation No. 68 and its subsequent supplements in line with the importance of “life and pension insurance” and its role in the development of the country’s insurance industry.
Monitor the sales network:
This part of the regulatory processes mainly supervises the correct implementation of these regulations:
Regulations for the Regulation of Insurance Agency Affairs” (No. 75),
Regulations on official insurance agency and brokerage fees (No. 83),
Regulations of Life Insurance Sales Agents (No. 96),
Regulations for granting insurance agency licenses to natural persons in free zones” (No. 48),
Direct Insurance Official Brokerage Regulations (No. 92),
Regulation on the establishment and operation and liquidation of communication offices of insurance institutions and foreign insurance brokerage institutions (No. 41),
Insurance Damage Assessment Regulations (No. 85)
Supervision of all insurance intermediaries in terms of the applicants having the conditions for obtaining representation, brokerage and damage assessment and approval of their activity license, collection of information, rights and duties of the insurance company, agent and broker and the fees of the intermediaries are carried out in this department.
Monitoring the professional qualification of employees, corporate governance and reporting and information disclosure:
According to the provisions of the law on the establishment of the Central Insurance of Iran and insurance, the law of commerce, the law of publishing and free access to information, a regulation entitled “Reporting and disclosure of information of insurance institutions” (No. 88) was approved and obliges insurance companies to include information in various fields. Corporate governance, risk management, financial performance, etc. in the company portal and Sanhab system for the general awareness of stakeholders and insurance activists.
The supervision of Regulation No. 93 and its supplements, which deals with the discussion of “corporate governance in insurance institutions” and refers to important issues such as the quorum of board members, the creation of risk management committees, internal audit and control, and the implementation of regulations, is one of the supervisory activities of this department. Is.
Finally, in order to ensure the appointment of competent people in key positions in insurance companies, Regulation No. 90, which refers to “How to verify the professional qualifications of key and operational employees”, has been compiled and approved, in which the minimum general and professional qualifications that are required If people have a proposal, it is included and on this basis, the qualification of effective people to enter the insurance industry is monitored. In addition, the performance of the key and operational managers subject to this regulation is also monitored during the tenure of the relevant jobs, and in case of possible violations, necessary monitoring action is taken.
In addition to all of the above, the deputy supervisor, in order to fulfill his duties, from the “official technical accountants of insurance” who obtain their license from the central insurance according to the regulation number 78, the association of internal auditors of the insurance industry, as well as the opinions of the members of the safety committee of insurance companies as an arm It is also used in consultation.
In general, despite the described coherent structure and the detailed regulatory rules established in the form of various regulations that are continuously the basis for monitoring the compliance of the activities of insurance institutions, and a brief description of them was presented here, Central Insurance J.A. By revising the regulations, Iran intends to complete its regulatory approach with principles-based regulatory approaches and risk-based supervision, and through the intelligentization of regulatory processes, it can improve the dynamics of the insurance industry in sync with economic developments and financial markets.
Ali Ostad Hashemi
Member of the Executive Board and Deputy Supervisor of Central Insurance