Planning to institutionalize the positive balance of production

According to the financial news report To Quoting from the economic world, Mellat insurance company ended this summer with a change of CEO and the management helm was entrusted to the hands of Alireza Yazdandoost, the former CEO of Asmari Insurance. Yazdan Doost, who has the experience of implementing special family programs and attracting micro insurance portfolios, visited the Technical Deputy of Property and Liability Insurance together with two members of the board of directors.

Planning to institutionalize the positive balance of production
This action indicates the attention of the new CEO to changes in the composition of the portfolio. Statistics published by the Central Insurance of Iran show that Mellat Insurance has a negative growth in the number of insurance policies issued, and the 47% growth of production insurance premiums in 1400 is due to the inflation rate and price increase. For example, the growth rate of the field of fire in 1400 compared to the previous year is more than 29%, its share in Mellat insurance is 2.7% and its share in the total market of this field is 1.3%, but on the other hand, in terms of the growth of the number of insurance policies issued, more than It has negative growth from 96%. This process has been repeated in the cargo insurances of Bemah Mellat. So that the production of insurance premiums in the field of cargo is associated with a growth of 14% and 1.1% of the total cargo insurance market belongs to Mellat insurance, but in terms of the number of insurance policies issued, it has experienced a negative growth of 95% in 1400.

This trend in accident, ship, engineering, money and credit fields is similar to fire and freight fields, so that in total, the growth rate of the number of insurance policies issued by Bima Mellat in 1400 is associated with a negative growth of 8.4%. From a technical point of view, this performance sounds an alarm and does not stay away from the eyes of the CEO who can make a profitable portfolio even from the unprofitable field of individual therapy. In its latest service, Mellat Insurance has announced that in order to meet the needs of customers and support their families, they offer accident insurance to their customers.

Why accident insurance?
The public relations of Bimah Mellat has reported that Bimah Mellat individual accident insurance is an insurance policy that supports the insured against all kinds of accidents by paying low premiums and provides valuable coverage. According to the statistics published in the Central Insurance Yearbook of Iran, the production of accident insurance premiums in the portfolio of Mellat Insurance has grown by 218% and has a 3% market share, although the losses paid in this field have also grown by 269% and 2.5% of the total losses with insurance. is the nation However, the damage coefficient of accidents in 1400 is more than 26%, which has a negative change of 3.7 points compared to the previous year. In other words, the damage coefficient of 30.4% in 2019 has decreased to 26.7%.

Although in terms of the number of issued insurance policies, it has experienced a negative growth of 39%, but the number of damages paid has increased by more than 46%. Therefore, by presenting an attractive plan, Mellat Insurance can make the balance of the number of insurance policies issued with the damages paid positive, and by using the law of large numbers, it can attract more policyholders and prevent the possibility of losses in this field. Mellat insurance portfolio shows that the growth rate of car body insurance, which is still considered among the profitable fields, is 54%, its share in the company’s portfolio is 4.7% and its share in the total body insurance market is 1.4%. However, the growth rate of car body damages paid in 1400 is about 164%, and its share in the company’s paid damages is 6.7%, and its share in the entire country’s body insurance market is 1.8%. Of course, the damage coefficient of body insurance is more than 56% and its share of the total damage coefficient of Mellat insurance is 80.3%.

The two fields of third-party losses and treatment in the Mellat insurance portfolio have a growth rate of 73 and 38%, respectively, and in contrast, the growth rate of damages paid in the third-party field is 79% and treatment is 77%. Meanwhile, Mellat Insurance has managed to reduce the third-party claims ratio by 67% in 1400 compared to the previous year.

Ships and airplanes
The growth rate of ship and plane insurance, which have high intensity and low frequency, in Mellat Insurance is 15.5 and more than 17 thousand percent, respectively. Both are associated with a negative growth of 93 and 57 percent in the growth rate of paid damages. The damage coefficient of ship and plane insurance in the portfolio of Mellat insurance is interesting. The damage coefficient in the field of ships with more than 38 percentage points is negative 2.4 percent, and in the field of aircraft with a negative percentage of 27.7 points, it has reached from 71 to 43 percent. The engineering field has a growth rate of 113% and has taken 2.5% of the portfolio, but its loss ratio has decreased from 272% in 2019 to minus 82% in 2014. In oil and energy insurances, Mellat Insurance has a 5% share, but the loss ratio of this field has decreased from 87% in 2019 to minus 14.7%, which indicates the attraction of a low-risk portfolio. In total, non-life insurances in the portfolio of Mellat Insurance have grown by more than 51% and have taken up 84.8% of the portfolio. The growth of paid damages in non-life fields is nearly 60% and they account for nearly 90% of paid damages.

Life insurances in Mellat insurance have 27% growth and 15% of portfolio, but in paid damages, the growth rate is more than 62% with a loss factor of 58%. In total, the loss ratio of the company in 2009 was more than 102%, which has reached 62.9% with a negative percentage of 40 points in 1400. Finally, the share of Mellat Insurance Company in the country’s insurance market is 2.3% and the growth of insurance premium production is 47% in 1400. But what is worth considering is that the growth of direct insurance premiums is more than 94% compared to the 34% growth of indirect insurance premiums generated by agents. This is while the Mellat insurance company was established in 2002 and did not have any branches for 13 years, and insurance premiums were generated by representatives and headquarters. Until, with the change of management and the arrival of Ebrahimpour in February 2015, its first branch was opened on Englebal St., Tehran.

Now, the share of Mellat insurance branches in the production of insurance premiums is nearly 30%. Although this company did not have a branch in the early years, unlike many old competitors, the share of Mellat insurance branches in the production of insurance premiums is more than the losses paid. The Central Insurance statistics of the provincial performance of insurance companies show that Mellat insurance branches have an acceptable performance compared to the branches of companies such as Iran, Asia, Alborz and Dana, so that the share of insurance premium production in Mellat insurance branches during the years 1396 to 1400 is more than the paid losses. . The sales network, especially the branches, are the powerful arm of Mellat Insurance in attracting the market and providing new services throughout the country.