Cooperative insurance prevented the closure of 5 thousand trade units

Company news ; Today, the insurance industry is considered one of the important factors in the development and progress of countries, and the development of this index shows the improvement of the economic situation and the improvement of the living standards of the people of a society. The essence of insurance is to contribute to the loss and replace certainty with uncertainty. Therefore, insurance as a method of coping with risk is a response to uncertain and risky conditions. Cooperative Insurance as one of the subcategories of the Ministry of Labor, Cooperatives and Social Welfare is considered among the emerging insurance companies. In the following, you can read the interview with Yunus Mazloumi, CEO of Cooperative Insurance:

Reporter: As the first question, can you give a brief history of cooperative insurance activity?

Mazloumi: Cooperative Insurance was established on July 20, 2012, and there are branches of Cooperative Insurance in all insurance fields and in all provinces and cities of the country, and we are providing all insurance products to our compatriots. Cooperative Insurance is one of the new companies in the country’s insurance industry, which has been able to achieve significant success in a short period of time.

Reporter: How has the profitability and financial turnover of cooperative insurance been in the past years?

Mazloumi: As a start-up company in Iran’s insurance industry, it must compete with companies that have a lot of experience in this industry. In the early years of the establishment of this company, Cooperative Insurance did not have much activity and in the last 5 years it has been able to experience good growth and development. As an example, it should be said that last year, the company’s sales and production of insurance premiums reached more than 1200 billion tomans, which exceeded the target. In the whole insurance industry, we are a young company, and the development process that Cooperative Insurance has taken seems to be favorable, and we can reach a suitable point in the country’s insurance industry with this process.

One of the most important factors of cooperative insurance, in addition to the production and sale of insurance premiums, is related to the problem of risk management and avoiding market excitement, and cooperative insurance is not looking for market share without considering the above two things. In other words, we are looking to increase the market share, but appropriate profitability criteria and maintaining risk management criteria are also important for the company, and based on these criteria, we are looking to increase the share in the insurance industry.

Reporter: For the fourth consecutive year, Cooperative Insurance Company has been able to get the first rank of financial wealth. What measures have been taken in this regard?

Mazloumi: Level 1 financial capacity means that we are able to fulfill the obligations we have accepted from the point of view of the regulatory institutions. It means that we fulfill all our obligations regarding the insurance policies that have been sold, and the customer has the confidence that the company will not face any problems. Financial wealth expresses this issue. This financial affluence comes back to the issue of risk management and avoiding emotions, which Cooperative Insurance has put at the top of its agenda in all its services. All these issues have caused Cooperative Insurance to achieve this first rank of financial wealth for the fourth year in a row.

Reporter: What activities has the cooperative insurance done in the field of social responsibility?

Mazloumi: In the field of social responsibility, good things have been done within the scope and financial capacity of the company. But if I want to announce one thing, I can mention the insurance product that was provided to deal with the corona disease in the years 2019 and 2014. This product was called business stoppage, and 5 thousand trade units (businesses) were saved from closure by cooperative insurance, and cooperative insurance paid damages to these units that were forced to close their businesses due to the corona virus. It has prevented many households from shrinking their tables.

Reporter: Cooperative insurance has succeeded in receiving the certificate of excellence. To which units is this certificate granted and what is the process?

Mazloumi: In order to have a standard management system, companies must fulfill a series of requirements that modern management assigns to organizations and companies. There are various tools to measure this issue, one of which is the Excellence Model, which is known as the National Excellence Model in Iran, and this certificate is awarded by the Industrial Management Organization. Businesses and companies are evaluated in the framework of the national model of excellence, and in 1400, Cooperative Insurance put itself on the test of this method and was able to obtain the certificate of excellence.

Reporter: Cooperative insurance had a development plan of 1000 billion tomans last year. Have you achieved this goal?

Mazloumi: Yes. With the efforts of all my colleagues in Cooperative Insurance, our brokers and representatives in all provinces, we were able to sell about 1200 billion Tomans in 1400 and we were able to achieve this goal in addition to being profitable. Our goal is not to sell insurance products alone, and we must also pay attention to and adhere to profitability and risk management criteria.

Reporter: What is the goal of cooperative insurance for the year 1401 in terms of sales?

Mazloumi: Our goal this year is to sell 1,900 billion tomans of insurance products, and according to the plan, we can achieve this goal.

Correspondent: Cooperative insurance is also active in OTC. Considering the holding of the annual general meeting, how much profit do you think it will bring to the shareholders?

Mazloumi: We were able to move from the base market to the second over-the-counter market in December of last year. People who have their hands on the fire in this field know what difficulties this change is associated with, which happened due to the efforts of all my colleagues in cooperative insurance. Cooperative Insurance Last year, we increased our capital from 150 billion tomans to 500 billion tomans. About 30% of Cooperative Insurance shares are floating and according to forecasts and considering the new capital, about 90 rials of profit per share has been made. The amount of dividend also depends on the opinion of the company assembly.

Reporter: Stock companies should take the lead in the field of transparency and put this issue at the top of their agenda. What measures have been taken in this regard?

Mazloumi: Stock companies should expose all their actions to everyone’s judgment in a glass hall. The insurance companies present in the stock exchange must be accountable for their actions to the central insurance regulatory bodies and the stock exchange organization. But cooperative insurance, in addition to these two institutions, must also attract the opinion of a third supervisory institution called the Ministry of Labor, Cooperatives and Social Welfare. That is, cooperative insurance must be accountable to three regulatory bodies. For this reason, we must have high transparency.

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