Solutions for the development of the insurance industry in Iran
According to the financial news, Yunus Mazloumi said in the analytical meeting “Insurance industry’s position in the economy of Iran and the world” which was held in Farda Ekhtaz studio, pointing out that the functions of insurance in the society’s economy are very diverse and extensive, he said: “facilitating the flow “Liquidity” is one of these functions, in the way that insurance helps businesses to put the money they set aside for the day in the economy into the flow of the economy.
He added: Insurance also helps them to develop their activities without fear of failure and destruction by “facilitating the development of businesses”.
The CEO of the Cooperative Insurance Company stated that insurance helps to “reduce unemployment” when businesses are closed and insurance reserves can help “invest in the economy” and stated: Insurance companies can also accept risks from other countries. and earn foreign exchange income, which leads to “creating income and invisible exports”.
According to Mazloumi, “reducing national damage” can also be considered one of the most important functions of insurance operations, and this can be realized as a result of the safety recommendations of insurance companies.
The CEO of Cooperative Insurance Company stated that the latest statistics on the development of the insurance industry in Iran show that the penetration rate of insurance, as one of the most important indicators of this industry, is about 1.8%, and this is compared to the global average. 7% is a very low figure, he said: Also, the per capita insurance premium in Iran is about 50 dollars, which is very small compared to countries like the United Arab Emirates with an average of about 1200 dollars.
He pointed out that so far many researches have been conducted on the causes of the backwardness of our country’s insurance industry from the rest of the world, and said: The results obtained from these studies show that the “false culture of the society” about insurance premiums paid and damages received is one of them. One of the most important reasons for people’s lack of interest in insurance companies is; Society thinks that insurance is “painful” because people pay insurance premiums regularly, but during one or more years, they may not receive a single claim!
Mazloumi considered people’s lack of awareness of the benefits of insurance and its role in reducing risk and creating financial security and the existence of cumbersome government regulations that limit the activities of insurance companies as other reasons for the underdevelopment of the insurance industry in our country and said: In such circumstances Several solutions have been proposed to get the insurance industry out of the current situation, the most important of which is education and culture building. People should be informed about the benefits of insurance in different ways so that the culture of insurability is institutionalized in the society.
The CEO of Cooperative Insurance Company added: Also, cumbersome government regulations should be amended to facilitate the activities of insurance companies. By supporting insurance companies, the government can help insurers compete with foreign insurance companies.
