The embargo has challenged cargo insurance

According to the report of Iran Economist, quoted from the public relations of Cooperative Insurance, quoted from Kherd and Kalan news site, the reporter of this media about this and other issues in the field of cargo, ship and aircraft insurance, with “Sahila Sharfi”, the manager of cargo, ship and aircraft insurance. The plane of the Cooperative Insurance Company is under negotiation; Where it became clear that “the implementation of cruel sanctions against our country” has had obvious results.
While the country is dealing with embargo and the transportation of goods is facing problems, what is the reason for the significant growth of production insurance premiums in the insurance industry in the statistics of the insurance industry?
Three reasons can be considered involved in the growth of production insurance premiums in the freight field. Part of this growth is natural and caused by the performance of companies in the sale of cargo insurance policies.
The other part is due to the statistics method related to this field in different companies. Some companies concentrate all statistics related to the field of transit, freight, ships and airplanes in one item, but in some companies, by placing separate managements, the statistics of these fields are also separated. Therefore, the statistical difference causes the lack of accurate measurement of production insurance premiums in these fields.
The third reason for the significant growth of production insurance premiums in this field can be found in the growth of the exchange rate. The goods that used to be imported into the country at 4200 Tomans dollars, are now imported at 40 thousand Tomans dollars, and this change in the value of imported goods affects its insurance premium.
If we have an accurate assessment and separate these things correctly, how much has been the real growth of freight insurance premiums in your opinion?
If we exclude the transit sector from the statistics and take into account the increase in the exchange rate, the maximum growth of the production insurance premium in the freight sector is 20%, which is a reasonable and common figure.
In freight insurance, can the number of insurance policies issued be a criterion?
The number of insurance policies issued in the field of freight is not a suitable indicator for evaluation, because this insurance policy is not the same as insurance policies that are valid for one year. In the field of freight, the insurance policy is issued for a certain value and after the end of the freight operation, the insurance policy expires. However, the number of proformas can be an evaluation index, but ultimately the value of issued insurance policies is the right criterion for evaluation in this field.
Do we need a special innovation to create growth in the field of transportation?
Freight field is the mother of all insurance fields and due to its long history, all aspects of this field are known and operational. The growth of insurance policies in this field is affected by external and environmental factors. The fact is that cruel sanctions strongly affect the performance of this field. Operations and how to transfer money between countries are effective on this field.
When foreign ships enter the waters of Iran and the embargo zone, their foreign insurance policies are no longer valid and they must buy insurance policies from Iranian insurers. In such a situation, the ship prefers not to enter the territorial waters of our country. In such a situation, an insurance policy is not sold. Therefore, the embargo is not a small issue and it has greatly affected our economy. As a result, cargo insurance has also faced challenges.
In the past, the north-south and east-west corridors were dominant, but now no one passes through these routes. On the other hand, when the foreign party does not accept some Iranian insurers, it is natural that they will not buy an insurance policy from them.
In the current situation, where despite the difficulties, cargo insurance policies are still sold to some extent, have public companies been more successful in this field or private companies?
If there was no embargo, there is no doubt that private companies would be very successful in this field. In the current situation, of course, the activity status of private companies is much better than state or quasi-state companies, but in general, the conditions of sanctions have affected all companies.
Do the same conditions prevail in the field of ship and plane insurance?
Yes, ship owners who want to come to Iran enter the embargoed area. In general, the general desire for international transfers has decreased and has also affected insurance policies.
What are the conditions in cooperative insurance?
In cooperative insurance, we have taken measures to improve the situation, which cannot be expressed due to maintaining organizational strategies. We have added new markets in the field of freight, ship and aircraft insurance. We have tried to enter other markets instead of limiting ourselves to the current limited cake and we have good income from this place.
In the international sector, despite these sanctions, Cooperative Insurance is known as a reputable insurer. Especially in the shipping sector, we have taken good measures. Cooperative insurance in these fields is not looking for big numbers, but looking for profitability. Customer satisfaction and prompt payment of claims are important to us. These factors have caused the growth of production insurance premiums of these fields in Cooperative Insurance Company to be higher than the industry average.
Is there any capital in the country that is not covered by ship, cargo and plane insurance?
Yes, it is too much. Article 70 of the Insurance Law says that when an import is made, a mandatory insurance policy must be prepared for it, but the reality is something else. Iranian exporters mainly try to reduce their costs and therefore often do not prepare an insurance policy. In the field of import, where there is a mandatory insurance policy, insurance policies are mostly prepared with a minimum capacity. This shows that the insurance culture in our country needs growth.
What is the damage rate in the shipping industry?
In the stages of import and export, the number of damages is less, but the severity is high. The principle of damage occurs when the goods leave the customs and enter the road transport cycle. The model and standards of transporting goods in ships and airplanes are very high and different from the road, but in the road transportation sector, the standards are weak and the way of operation is also unfavorable, as a result, the damage is high. The diversity and compatibility of the means of transportation with the goods must be observed in the transportation process, which is not possible!
In some countries, weight fluctuation up to one kilogram is calculated and included in the insurance policies for transporting goods, but in our country, sometimes up to 20 kilograms of extra weight is ignored. These factors cause damages that are ultimately paid by the insurance company. The company tries as much as possible to comply with the insurance policy and its terms.