Production of 1,600 billion tomans of insurance premiums by cooperative insurance
According to Iran Economist, citing the public relations of Cooperative Insurance, Younes Mazloumi, the company’s managing director, announced the production of 1600 billion Tomans in insurance premiums in 11 months of this year and said: Cooperative Insurance Company generated 1600 billion Tomans in insurance premiums in less than 11 months of this year. produced, which has grown by 67% compared to the same period in the previous year, and is also more than 10 times the total production insurance premium in 2015; In other words, within six years, we have experienced 870% growth in Cooperative Insurance Company.
He continued; In addition to premium production and market share, Cooperative Insurance Company has prioritized profitability, because the strategy and policy of any insurance company must first be profit generation, and next to that, premium production and market share acquisition.
Mazloumi added: Cooperative insurance company has been able to improve its position in the insurance industry every year in terms of market share and ranking.
The CEO of Cooperative Insurance said: The profitability of the Cooperative Insurance Company increased during the years 1995 to 1400 and this trend will continue in 1401.
Success in gaining a 1% share of the market
Mazloumi further stated: When I joined Cooperative Insurance Company, the company’s market share of the entire insurance industry was less than 0.3 percent, which increased to 1 percent of the insurance industry at the end of 1400, and we hope to reach 1 percent in 1401. To achieve about 1.1% market share.
Among the details of this market share are 36% tertiary, 23% medical, 17% life, 7% engineering, 5% liability and 5% fire.
He said: Of course, this happened in a situation where we have witnessed the entry of several new insurance companies into the insurance industry during these few years, as a result of which some companies have lost their market share.
The CEO of Cooperative Insurance continued: It is a difficult task to take market share in such a way as to maintain profitability. Because the competition among the insurance companies is very fierce and it is difficult to convince the policyholders to get a policy from a company that is newer and younger, our colleagues have been able to do this at Cooperative Insurance.
Mazloumi added: Another good thing that was done in Cooperative Insurance was the reduction of the loss ratio, which made the company profitable. In explaining it, it should be acknowledged that during the years 1995 to 1400, the trend of the company’s loss ratio was decreasing and it reached its lowest level in 1401, which compared to the industry, both the loss ratio and the loss ratio were lower.
17% share of life insurance
He continued to describe the company’s performance report and pointed to the share of Cooperative Insurance Life Insurance and stated: In 2015, the share of Cooperative Insurance Life Insurance accounted for 5% of the total production portfolio, which in 1401 increased to 17%. The percentage of receipts, which is a very good share, because it is higher than the industry average, and considering that insurance companies are trying to increase their share in life insurance (except for two or three companies that have a high percentage of life insurance) The insurance industry average in most companies is below 17%.
The CEO of Cooperative Insurance, pointing out that this company has been able to improve its position in the insurance industry every year in terms of market share, said: Cooperative Insurance emphasizes the geographical division of the portfolio based on risk assessment and management, as we believe that there should be an optimal and favorable distribution. to have risk across the country.
Mazloumi also emphasized on the management and optimal assessment of the geographical distribution of risks throughout the country and said: covering risks in different provinces regardless of the risk of these provinces can put companies at risk in the future in fulfilling their obligations. In this regard, optimal management is necessary. It is done in geographical coverage of risks.
He clarified: This strategy does not mean that we avoid covering risks, but a careful assessment should be made of the amount of risk that is covered in neighboring villages and cities.
The release of technical and supplementary natural disaster reserves should not be done easily
The CEO of Cooperative Insurance continues to discuss the release of supplementary technical reserves for natural disasters, which is received in accordance with the 58th regulation, when should it be released and whether events such as earthquakes in different regions of the country are not a factor for the release of these reserves and why insurance companies are in line with Depreciation of accumulated losses in recent years have taken action to release these reserves, he said: Reserves for natural disasters according to the bylaws of the Supreme Insurance Council is a far-sighted action, which comparative studies also show is common in other countries of the world.
Most natural disasters have time periods of several decades. Therefore, saving is logical and correct, and I hope that the interaction between the auditing organization, the Central Insurance and the Supreme Council of Insurance will be formed and the favorable saving received by the insurance companies will continue.
Regarding the release of these reserves, he also said: the operation of this reserve is difficult for difficult conditions, and one of the shareholders’ analysis of the difficult days is probably the issue of accumulated losses in companies, and in order to get out of Article 141 of the Trade Law, these reserves are free in some companies. has been
The representative of the Syndicate in the Supreme Council of Insurance continued that these reserves are foreseen for difficult conditions and it is expected that they should be released in situations such as an earthquake, and it is better to keep this reserve intact and not to release it so easily.
A capital increase of 1000 billion is coming
Mazloumi also answered why Cooperative Insurance could not obtain a trust acceptance license and said: The license was supposed to be granted to the company with the increase of the company’s capital from 150 billion tomans to 500 billion tomans, and after the capital increase became operational, the capital The requirement for insurance companies to obtain a trust license increased from 500 billion tomans to 800 billion tomans, and we are now aiming to increase the company’s capital to 800 billion tomans, which of course will not reach this year.
The CEO of Cooperative Insurance emphasized that for this capital increase, the company’s assets are being reassessed, and reminded: the initial report of this evaluation has been prepared, and Cooperative Insurance has protested to the expert center because the company’s estimate is more than the evaluation done. has been
He added: Our proposal is to increase the company’s capital from 500 billion tomans to one thousand billion tomans, which if it covers the entire amount will come from the revaluation of assets.
It is unfortunate when we calculate the average fees and divide them in the sales network
Mazloumi also stated regarding the devaluation of the commissions received by the sales network in accordance with the inflationary economic conditions of the country and the need to improve and increase these commissions: It is unfortunate when we divide the average commissions in the sales network and a solution should be found for this issue, of course In the Supreme Council of Insurance, the opinions on how to modify the fees are different. Some say that fees should be determined according to the profitability of companies and even the interests of shareholders. On the other hand, some believe that due to the inflationary conditions and the increase in costs, the percentage of commissions should also increase, and in any case, the revision of Regulation No. 102 is on the agenda of the Supreme Insurance Council.
Less than 3% of the cooperative insurance portfolio belongs to major shareholders
He explained about the level of support of the major shareholders of Cooperative Insurance Company and what percentage of the company’s portfolio is related to the insurance coverage of these shareholders: Fortunately, Cooperative Insurance has good and coherent shareholders who support the company’s management team and partly The company’s portfolio is also related to them, but it is not a major part, and cooperative insurance is not dependent on the insurance premium of its major shareholders.
The CEO of Cooperative Insurance stated that it is not a bad thing for the major shareholders to entrust their insurance coverage to the company in which they are shareholders and said: the ratio of insurance coverage of major shareholders to the total portfolio of the Cooperative Insurance Company is lower than three percent. Is.
Mazloumi emphasized about the forecast of Cooperative Insurance for the next year, referring to the 36% growth of the insurance industry: Cooperative Insurance will improve its position if it grows by 50 to 60%, but we believe that jumpy and multiple growths are pathological growths, so we wait. We have 12-month statistics and this year’s growth to forecast next year.
According to him, the prediction should be in such a way that it is difficult to achieve, but it should not be such an ideal that it is completely unattainable.
It is noteworthy that in this meeting Mohammad Saleh Chitgaran, director of legal affairs; Maryam Salmasi, director of risk and development of the organization; Somia Mohammadi, director of public relations and customer affairs; Sohaila Sharfi, director of ship, freight and aircraft insurance; Hassan Puraskandari, manager of fire insurance; Roza Saidi, director of medical insurance; Asal Ashtari, head of liability and engineering insurances and Elham Wafai, head of reinsurance were also present.