Abstract

National mortality tables used for all types of life insurance may not give correct results when calculating for all types of annuities and pension funds. Because, in annuities, insurer may face a variety of risks, including longevity risk, which means that the person will live longer than expected. Pension funds and annuity providers are exposed to longevity risk because they fund people's retirement and often promise to pay annuities for life (as long as the person lives). In other words, they accept and insure the risk of a person's lifetime. As a result, using the annuity tables specific to the insured of these insurances and finding adjustments for the national mortality table that will improve the results and accurate assessment of the death rate of the annuitants, is of great interest to the insurance industry. For this reason, examining the experience of selected countries regarding the mortality tables used in life insurance and proposing a specific framework for preparing the mortality table for life insurance and annuity insurances can be useful for the insurance industry, which will be discussed in this research project.

Keywords: life insurance, annuity, pension fund, mortality table.

Abstract

Life insurance contracts with death coverage have very delicate and sensitive legal points; But in the country of Iran, the lack of attention and sometimes neglect of these important and sensitive points has caused the insurance industry to face legal and regulatory deficiencies and deficiencies, especially in matters related to obligations for the benefit of third parties (beneficiaries). These deficiencies subsequently lead to numerous gaps, ambiguities and legal problems, and sometimes to confusion in the procedures of insurance companies in similar cases. Therefore, in this research, an attempt has been made to identify the legal and regulatory gaps and shortcomings in Iran with the method of comparative study between the laws and regulations governing the beneficiary in life insurance with death coverage in Iran and selected countries. In the following, it has been tried to take a positive and effective step in the direction of the development of life insurance contracts in the insurance industry from the jurisprudential aspect by presenting the necessary juristic-legal suggestions to be included in the draft of instructions, regulations and even related laws in this field. It can help to reduce the confusion of the procedure of insurance companies and sometimes the violation of the rights of the beneficiaries and help to smoothen the service delivery of the insurance industry to the society.

Keywords: life insurance, regulatory gaps, insurance industry.

Abstract

Insurance companies are one of the most important institutions in the country. The duty of these companies is to compensate the cost in the event of an accident. In the meantime, medical insurance is very important among the types of insurance because it directly deals with the health of people in a society. Therefore, in order to reduce treatment costs, most people prefer to be covered with this type of insurance. Supplementary medical insurance is one of the types of medical insurance that is provided to people along with basic medical insurance. People who apply for supplementary medical insurance can reduce their treatment costs significantly by purchasing this insurance policy. In this research, evaluate the performance of compensation in supplementary health insurance is investigated. The way of research is as follows. Firstly, using a library study, effective factors of damage assessment are derived. After this, field studies should be done. The usual method in field studies is to set a questionnaire. To do this work, based on the SERVQUL model, a questionnaire has been settled. Based on the obtained data from questionnaire, one main hypothesis and five Sub-hypothesises have been considered. Also, the main factors that cause customer dissatisfaction and satisfaction have been extracted in this research so that insurance companies increase their popularity in a competitive environment. For this reason, the way of payment of damages in supplementary medical insurance can be useful in the insurance industry, which will be discussed in this research project.

Keywords: policyholder satisfaction, supplementary health insurance, SERVQUL.

Abstract

Life insurance is an important household insurance and financial planning product, nevertheless its penetration rate in Iran is very low. One reason, of course, is the surrender of insurance policies. The purpose of this research is to investigate the effect of individual characteristics and insurance contract features that affect surrendering term life insurance policies. For this purpose, a database of 35171 insurance policies issued by “Dey insurance company” was used as a pilot for the study. Deep learning and neural network algorithms which have very high accuracy in prediction are used as data mining techniques. The results show that from demographic characteristics, variables age, gender (female), health surcharge, accident risk rate and from the contract features, variables like the term of the insurance policy, the elapsed time since the start date, the premium payment methods with longer installments, higher annual increase of the benefits, and lower the number of risks covered and lower the benefit are related negatively with the probability of policy surrender. The results also show that if the insured person is the policy holder himself, the probability of surrender is at its minimum if the insured is someone else the probability of surrender is higher and it increases for distant relatives. The model performance is desirable based on evaluation metrics. The accuracy of model is 74 percent in prediction of both types of surrendered and non-surrendered insurance policies. The performance is much better in prediction of non-surrendered insurance policies, however the primary interest of the research is the prediction of surrender insurance policies. The model performance is still desirable despite the problem of imbalanced data. In our database, the ratio of surrendered insurance policies to non-surrendered is 3 to 100 that causes the learning process to become biased towards the prediction of the majority class. Nevertheless, the obtained 59 percent recall shows that out of the total 244 surrendered insurance policies the model has been able to correctly predict and classify 145 cases in the class of surrendered insurance policies.

Keywords: life insurance, deep learning, neural network, insurance laps.

Abstract

Due to the importance of insurance companies in the financial services industry in the structure of the entire economy, information and financial reporting is very important in this industry, and the effective use of the IFRS 17 is essential in order to realize this importance. Therefore, the present paper first of all examines the current state of financial reporting in the insurance industry and identifies the challenges and issues related to it, and then considering the effect of the new standard on the financial statements and key performance indicators of insurance companies, the challenges It has identified the problems that insurance companies in Iran will face in applying measurement models in the new standard and provides solutions to solve the challenges. In this research, the issues and problems of financial reporting in the insurance industry in Iran in the current situation were classified into three categories: recognition and measurement, reporting and disclosure, and systems and processes. Also, the challenges of using measurement models In IFRS17 and solutions to solve them in groups including goals and scope of application, unit of account and level of aggregation and separation of contracts, loss contract test, separation of insurance contract components, the variable fee approach, the insurance premium allocation approach and the block structure approach were identified and analyzed under subgroups through qualitative content analysis using a focus group. In the third step of the research, a comparison of the regulations of Iran's insurance industry with IFRS 17 was done. The results of the research on the current state of financial reporting in the present insurance industry show that the insurance industry is facing many issues and challenges in financial reporting in the three areas of recognition and measurement, disclosures and systems and processes. The most important challenges in the field of recognition and measurement include the lack of accounting standards in the field of life insurance, the lack of application of common measurement methods at the international level, the lack of insurance measurements at the level of the group of contracts. And recognition of insurance premium income is only based on information at the time of transaction and ignoring adjustments such as risk adjustment or adjustments due to market risk. The challenges identified in the field of disclosures included the inability to distinguish between insurance operations and investment operations, difficulty in distinguishing whether a group of contracts is profitable or unprofitable, and non-disclosure of the nature and amount of risks arising from insurance contracts. And finally, the challenges identified in the field of systems and processes were the lack of sufficient training and skill training of employees and their lack of sufficient mastery of the specific conditions of the industry and the lack of integration of the information technology system and the software used. Also, the research results regarding the IFRS 17 show that the measurement models in IFRS 17 are highly dependent on judgment, actuarial modeling techniques, and the quality of basic information. And the implementation of the IFRS 17 in insurance companies faces many challenges that were identified and classified during the current research in order to be well understood. The findings of this research, in addition to increasing knowledge in the field of insurance industry, provide an insight for the supervisory authority on insurance companies, the accounting standard setting authority and the Securities and Exchange Organization so that they can, considering the current situation and the challenges ahead, in The way to achieve the goal of using FRS17 is to take more effective steps. The findings of the analysis of the approved regulations and their compliance with the requirements of the International Financial Reporting Standard 17 show important inconsistencies, which are mainly in the field of measuring insurance contracts. Considering the novelty and complexity of the new standard and the lack of sufficient resources in this field, we tried to compile a practical guide so that the new accounting model of insurance contracts is properly understood. Compilation of Guide IFRS 17 is applied professional research in accounting. We wrote this guide based on a search in the authoritative literature. This guideline has 17 sections, which include: 1) Overview of IFRS 17, 2) The objective, definitions, and scope of IFRS 17, 3) The definition of an insurance contract, 4) the combination of insurance contracts, 5) Separating components from an insurance contract, 6) Level of aggregation, 7) Initial recognition, 8) Measurement - overview, 9) Measurement - general model, 10) Premium allocation approach, 11) Reinsurance contracts held, 12) Measurement of contracts with participation features, 13) Contract modification and derecognition, 14) regulatory frameworks and IFRS 17, 15) presentation and 16) disclosure. This guide could be of use for managers and accountants in the insurance industry.

Keywords: IFRS17, Iran, insurance industry.

Abstract

Blockchain is one of the most transformative technologies that can fundamentally affect the insurance industry. The possible effects of blockchain can go beyond conventional technology and influence the business model and nature of insurance operations. This technology can even change the shape and format of the activities performed in insurance companies. Even though there are many doubts about its effectiveness, and large companies are still in the trial-and-error phase and are investigating this technology, most companies and governments have started extensive measures to plan to use the capabilities of blockchain. Undoubtedly, applying this new technology is not possible without comprehensive study and benefiting from a coherent road map. Therefore, in this report, we have tried to introduce the actions of insurance companies at the international level and discuss the opportunities and possible applications of blockchain in the insurance industry. We also studied the opportunities brought by this technology along with its challenges. This report also outlines the blockchain ecosystem of the insurance industry and explains how the insurance industry can reap the benefits of blockchain. We will briefly mention the technical details necessary for the implementation of the blockchain network so that it can be used for the design of the network later on. This report ends with a roadmap for using blockchain-based solutions in the insurance industry. Management proposals and a sample of the constitution of the insurance industry blockchain consortium are among the other parts of this report.

Keywords: blockchain, roadmap, Iran, insurance industry.

Abstract

In this research, the “Directive for Estimation of Technical Provisions in Third Party Motor Liability Insurance” by Central Insurance of Iran is being investigated. The goal is to find the causes of error in the estimates of future claims and to either eliminate or mitigate them as much as possible. We have prepared a list of possible causes of error based on the present literature and the interviews with subject matter experts. Then we conduct a data driven analysis of all passible factors and find the most effective ones. Moreover, for each factor we propose a proper method for mitigating the error. The data has been acquired from a selected insurance company and contains claims data of that company for 10 years. Furthermore, as a general tool for controlling the error, we will propose a method for obtaining confidence intervals for technical provisions. We will also implement our methods on the real data and report the results.

Keywords: technical reserve, motor liability insurance, third party liability insurance.

Abstract

Regulatory and supervisory authorities must operate under a legal framework to ensure the fulfillment of their missions and the correct performance of the tasks defined for them. The Establishment Act of Bimeh Markazi Iran/Central Insurance of IR Iran & Insurance Operations is the main legal framework that governs the activity of this organization. Considering the passage of more than half a century since the approval of this Act and the new requirements that are imposed on the insurance industry from both the internal and international environment, it is necessary to review it.

The purpose of this study is to examine the rules and regulations governing the establishment and activity of insurance regulatory and supervisory institutions in selected countries, as well as to study the principles of international standards in this regard and compare it with the legal framework of the country's insurance industry supervisory body with the aim to identify the possible gaps, draw the desired framework and propose reforms to get closer to the desired framework.

To achieve this goal, library study and national and international documents available in this field have been used to identify general frameworks. In addition, by using Grounded Theory and interview and questionnaire tools, the gaps that disrupt the effective functioning of this institution from the point of view of experts and main stakeholders of the insurance industry, have been identified.

Compared with the lessons learned from the comparative study, finally, suggestions have been made to solve these gaps and challenges and improve the capacity of the existing regulations.

Keywords: regulatory and supervisory authority, grounded theory, insurance industry.

Abstract

Due to the high rate of road accidents and its social and economic consequences, tasks have been set for the insurance industry in the sixth economic development program of the country. Therefore, the research project "Investigation of the effect of the characteristics of third party insurance on the rate of losses, based on data mining" has been carried out. In this research project, which was carried out in collaboration with Alborz Insurance Company, the data of the third party insurance field was received from the company in the form of a database, and after cleaning and preparing the data, the data analysis was done. Among the most important results of this research, using machine learning models, is the effect of the age of policyholders on the rate of damage, especially in passenger cars, trucks and motorcycles that the age group of policyholders with a higher rate of damage in each of the 5 different car groups Is. Also, the driving record, the age of the car are other influencing factors. People whose certificate has been valid for less than 5 years have significant losses; This is despite the fact that people whose license is less than a year old have a lower damage rate, and this fact means that these people are banned from driving on the roads. The type of use in autocar has the greatest effect on the damage rate. In this group, urban public use has the highest rate.

The number of cylinders that is included in the price list only affects the damage rate of car dealers. Therefore, it is suggested that the rate letter of the third party insurance field be revised based on the results of this research. Also, more than half of the damages belong to non-insured drivers that insurance companies do not have information about.

Therefore, the use of telematics tools or increasing the rate, especially for younger drivers, which is applied in many countries, can be useful and fruitful to reduce damages. In the final part of this research plan, an attempt has been made to design models for predicting damages, the challenges of which have been discussed and investigated, and companies can use the architecture of the designed hybrid model, and a separate model has been designed for each vehicle group and for the types of damage. Each of these models is obtained from the combination of 100 models, and the results of the model can be relied on data and reduce more than 50% of damages. The details of the models belong to Alborz Insurance Company and have been delivered to this company for the operationalization of the relevant codes and cannot be published.

Keywords: motor liability insurance, third party liability insurance, data mining, Iran, insurance industry.

Abstract

Iran has experienced many serious negative shocks to its economy with likely impacts on the household demand for insurance over recent decades. This paper studies the impact of the most serious shock, which is the nuclear sanctions, on the demand. For this purpose, we employ 14 cross-sectional Household Surveys of Income and Expenditures conducted by the Statistical Center of Iran between the years 2005 and 2018. Our analyses suggest that the sanctions reduce the income and total expenditures of households significantly, and as a result, the households' demand for insurance falls in 2008. However, when the sanctions get much tougher in 2011, the demand increased. It seems that the households have learned, during the years after the sanctions, that the negative likely consequences of not having insurance are larger than the cost of purchasing insurance.

Keywords: sanctions, Iran, insurance industry, Household Surveys of Income and Expenditures.

Abstract

Aquaculture is one of the effective and efficient ways to produce white meat, which has the ability to create employment and export a lot. But this activity has its own risks, and the difficulty of managing these risks discourages producers from developing their activities and attracting investment. Reducing the concern of producers by providing insurance coverage can smooth the motivation of production in order to reach the set goals. Therefore, Central Insurance, in line with the development of various insurance products and in order to expand the scope of activities of commercial insurance institutions in the field of aquatics, requested to conduct an applied research in this field. Aquaculture has been compiled in leading countries in this field.

The research method, to examine the experiences of countries, is documentary, during which all available related documents were examined and the result was presented in Chapter 2, based on the experiences of countries of different continents. In the following, methods based on questionnaires and interviews have been used to collect the field information needed to provide a local insurance product. The questionnaire tool was used to assess the risk of a sample of fish farmers, the result of which is presented in Appendix 2. Then, the interview tool was used to get experts' opinions in order to identify the existing challenges and how to manage aquaculture risks. Finally, in chapter 4, the general terms and conditions of fish farming insurance were formulated and the way of regulating and supervising it was explained. The project ends with providing additional suggestions in the form of answers to the research questions. In general, it seems that the structure of Takaful fund for edible fish insurance, along with the role of commercial insurance as Takaful operator and Agricultural Insurance Fund as reinsurance of Takaful fund, is an optimal and native solution for risk management.

Keywords: aquaculture insurance, aquafarming insurance, Iran, insurance industry, takaful.

Abstract

Although there are conventional insurance arrangements to cover all types of insurable risks, but considering that in conventional insurance arrangements, a transaction is made in the form of purchasing an insurance policy (risk coverage) in exchange for paying an insurance premium, in which , the insurer's obligations are random and uncertain in nature, therefore, from the point of view of jurisprudence, there are doubts Such as gharar (uncertainty), gambling and riba (usury) are related to it, and for these reasons, some Islamic jurists have doubted the validity of the insurance contract.

This has caused some Muslims to turn away from providing insurance coverage and makes them vulnerable to all kinds of risks. In addition, Muslim countries are generally considered to be low or middle income countries, and at the same time, many risks of natural disasters occur abundantly in the geographical area of Muslims, and the combination of these two causes a lot of damage. It happens in Muslim societies that due to their lack of compensation, it leads to more disability of the vulnerable classes. In Iran, despite the solution of conventional insurance based on the opinions of Imamiyya mujtahids, some religious scholars and also some Sunni people of the country are reluctant to accept conventional insurance.

Therefore, this risk coverage vacuum also exists in Iran. In order to solve this gap in line with the design of risk coverage products according to the taste and preferences of this part of the country's society, as well as providing a competitive insurance technology for risk coverage, designing a Takaful system in order to create a foundation for the creation of Takaful-based risk coverage mechanisms, as The central issue of this research has been considered.

The research method used in this research is document research, comparative, descriptive and analytical study. Valid scientific sources and documents (including books, articles, research plans and laws and regulations...) have been used in the implementation of the analytical stages of the research. These sources were prepared through internet search or direct reference to document centers, libraries and other related centers. The qualitative content analysis method was used to analyze the extracted documents.

The results of the research include the presentation of a proposed framework for takaful operations in the country, a specialized glossary including the introduction and definition of takaful specific words, jurisprudential analysis of the Shariah foundations of takaful operational models in leading countries to explain the selection of the appropriate operational model for the takaful industry in Iran, review of risk assessment frameworks and Damage management, analysis of takaful laws and regulations of Afghanistan, Pakistan and Malaysia and finally presenting a draft of Iran's takaful law, which after approval can be used to formulate takaful guidelines and regulations by the supervisory body, jurisprudence council and takaful sellers in the country.

Keywords: takaful, Imamiyya mujtahid, gharar, riba.

Abstract

The purpose of this research project is to study and review the annuity insurance products offered in selected countries in order to improve the products offered in Iranian insurance companies and also to help design new insurance products. Familiarity with the types of annuity insurance products will help insurance companies to play a significant role in increasing the penetration rate of life insurance in Iran, in addition to meeting the needs of policyholders and customers.

In this regard, in this research project, the issued rules and regulations will be reviewed. Furthermore, the annuity insurance products offered by insurance companies in these countries and their technical features will also be studied including the accumulation period, administration fee, commission, guaranteed benefits, possibility of withdrawal, guaranteed minimum interest rate, initial interest rate, policy renewal interest rate, age range for issuing insurance policy, minimum premium, surrender fee (penalty), taxes, exemptions, death benefits, investment requirements of insurers for annuities (if information exists for each of the mentioned items). Also, financial performance and sales of top companies in selected countries will be examined. In other words, the share of annuity insurance portfolio in these companies, the amount of insurance premium and its growth will be investigated if there is any information.

Finally, by reviewing the annuity insurance products provided by insurance companies in Iran, we will propose to modify the provided products or provide new insurance products based on the research projects findings.

Keywords: annuity, sale, interest rate, guaranteed benefit.

Abstract

The intensity of competition and the profitability of each industry determine the way and extent of reaction of different companies based on the interests of each company. It should be noted; “Conflicting interests” refers to a situation in which the interests of two entities are in opposite directions, and in contrast “conflict of interests” means that an entity is placed in a position where there is a conflict between personal interests and social interests. In general, the Conflicting interests and conflict of interests in the insurance industry are caused by shareholding or ownership of insurance companies, simultaneous employment in insurance companies, the union of the supervisor and the supervised, the union of the executive and the rule-maker, the entry of a new company into the insurance industry, Providing alternative insurance products in other financial industries and so on. Due to the importance of the issue, different countries have made rules in this area. In Iran, the upstream and strategic laws as well as the by-laws of the Supreme Insurance Council play a decisive role in determining the rights of beneficiaries and conflict management in the insurance industry.

In this study, "fundamental theory" was used as a research method, and by using questionnaires and conducting interviews with 40 experts, the research data were collected, coded and interpreted according to Strauss and Corbin's approach. After extracting 105 codes from the text of the interviews, similar codes were merged into 18 concepts. Then, by applying the Work Breakdown Structure approach, the conceptual model of the conflicting interests and conflict of interests of the insurance industry was calculated, in such a way that the conflicting interests and conflict of interests were discussed in 7 topics. It should be noted that in general, the origin of Conflicting interests and conflict of interests is mainly one of the two situations of "interaction" or" source of power". Based on the results, it is necessary to take limited or controlling Conflicting interests and conflict of interests, including three stages of "rule-making (formulation) and limitation", "establishing transparency" and "committee review" and based on this the existing by-laws should be revised and updated or new by-laws should be approved.

Keywords: competition and conflict management, Supreme Insurance Council, Iran, insurance industry.

Abstract

Every year, a large number of people die or are seriously injured in fires. Fire in buildings and warehouses is a great threat to the safety of residents, employees, supply chain, etc. The purpose of this research is to identify preventive measures for fire damage in residential buildings and warehouses, taking into account the related risk factors.

In this study, a systematic review was first conducted on the most important studies conducted in the field of fire in residential buildings and warehouses, effective factors and existing safety methods. From the first record to February 2023, PubMed, Web of Science/Knowledge, and Scopus databases were searched and selected articles were included in the study. In the next step, using the opinions of experts as well as library studies, prevention and frequency reduction methods as well as controlling the severity of damages caused by the occurrence of each of the risk factors were calculated and presented. Bowtie is an effective way to reveal the cause-and effect relationships of accident causes, safety barriers, and possible consequences of an accident. In this study, based on bowtie analysis, a general framework for fire risk management in residential buildings and warehouses is developed through the analysis of previous fires.

In the systematic study phase, a total of 5783 published articles were reviewed in the residential buildings section, of which 37 articles met the inclusion criteria, and in relation to warehouses, a total of 3622 published articles were reviewed, of which 21 articles met the inclusion criteria.

The findings of these studies were included in the two main groups of preventive-protective measures and fire risk factors of residential buildings and warehouses and the resulting damages. Regarding preventive measures, the most important factors to reduce the risk of damage caused by fire in residential buildings, which were mentioned in the studies and interviews, include amending laws, changing and improving the environment, changing behavior such as emergency evacuation during a fire, improving emergency medical services.

and increasing awareness, and the most important factors to reduce the risk of damage caused by fire in warehouses, including amending laws, correct storage of internal materials, measures related to warehouse buildings and structures, safe behaviors and actions of employees and managers and their training, and upgrading and training the rescue system and medical care.

The most important point of this study is to focus on preventive ways including environmental modification, improvement of safety rules and change in risk behavior among residents, employees and officials. Policymakers should pay more attention to these important issues to improve fire safety and injury prevention.

Keywords: claim management, fire insurance.

Abstract

Pricing is the most important part of any business model, and decisions about it will have a great impact on the development and profitability of the company. In the insurance market, one of the most important factors affecting demand, especially in optional insurance, is the price and amount of insurance premiums. Therefore, using the correct pricing strategy has a significant impact on the behavior of consumers in this market and gaining satisfaction, loyalty, and maintaining them in the market. The most challenging step in defining such a strategy is estimating customer behavior in purchasing insurance products in uncertain markets. In this research, we intend to examine the issue of insurance pricing, in which the insurance company receives a certain amount of insurance premium, but in case of insured accidents, it must also pay claims to the insured. Therefore, the question that arises is how to determine the optimal prices that both maximize the long-term income and effectively estimate the distribution of demand. To do this efficiently, this project explores a family of recent machine learning techniques, including reinforcement learning.

Keywords: property and liability insurance, demand, insurance industry.