Insurance Growth Acceptable Despite Sanctions
The 26th National Conference on Insurance and Development (NCOID) with the main theme of “Increasing Insurance Penetration Rate: Challenges and Strategies” was held on December 3 and 4, 2019 in two sets of gatherings namely academic sessions and general insurance industry sessions at Alzahra University and Milad Tower Int’l Conference Center, Tehran, Iran.
Permanently programmed to be held on the occasion of Insurance Day in Iran, NCOID in its 26 conduct in a row, has acted as a bridge between insurance industry, academia, research centers, and the regulatory authority and in many occasions has made policymakers to think twice about an issue and this has even led to law amendments and perspective change in later times. This huge gathering has created an ample opportunity for all the scholars and insurance executive authorities to come together to exchange views and discuss mutual interests, according to a report by PRIAO, IRC.
In this seminal event, several researchers and scholars shared their latest findings and opened debates on relevant topics in the form of paper and poster presentations and professional panel discussions.
There are several significant differences between 26 NCOID with its previous precedent conducts. The separation of the academic session of the conference and its general gathering on the Day of Insurance, enabling an online voting poll and online certificate issuance for more convenience of the audiences, handing over the sole conduct of the evening panel discussions of the general gathering to Iran Insurers Syndicate and Professional Insurance Institute, and introducing the nominated insurance industry honor roll and the best insurance officer are some to name a few.
Insurance Growth Acceptable Despite Sanctions
On November 30, 2019, Dr. Hamid Kordbacheh, Head of Insurance Research Center, in an exclusive media conference set up for the NCOID said: “Insurance growth is acceptable despite sanctions”.
“The academic sessions to be held on December 3 from 8 a.m. to 4 p.m. in the International Conference Center of Alzahra University, where the President, Members of the Board, and directors of Central Insurance of I. R. Iran (Insurance Supervisory and Regulatory Authority), General Secretary of Iran Insurers Syndicate, CEO and Directors’ of the insurance companies, managing directors of insurance industry associations, and faculty members of IRC and some universities will participate.” He added.
“The initial day of the conference is dedicated to the presentation of peer reviewed papers in nine professional panels. The panelists are comprised of the Members of the Board of Central Insurance of I.R. Iran, insurance industry leaders and scholars, academic researchers and faculty members.”
Referring to the topics of the panels to be held in the academic sessions, he said: “The professional panels in the first day revolve around the following themes: Panel #1: Insurance Penetration Rate: Stylized Facts; Panel #2: The Role of Culture, Motivational Stimuli, Marketing, Customer Satisfaction in Insurance Penetration Rate; Panel #3: The Role of Pricing Approaches, Quality of Insurance Services, Prime Cost on Insurance Penetration Rate; Panel #4: Insurance Products, Need Analysis and Tailoring Insurance Products based on Customer Needs; Panel #5: The Role of Institutional Factors (i.e. Legal and Regulatory), Transparency and Public Trust on Insurance Penetration Rate; Panel #6: The Role of Insurance Industry Structure and International Relationship on Insurance Penetration Rate; Panel #7: The Role of Insurance Instruments and IT on Insurance Penetration Rate.”
“In December 4, the industry sessions will be held from 8 a.m. to 5:30 p.m. at Milad Tower Int’l Conference Center, Tehran, Iran. Like before, the morning session is dedicated to the keynote speeches from high ranking governmental officials and introducing the insurance industry honor roll for 1398 (2019). The second part of the industry sessions is a presentation of the stylized facts of the insurance penetration.”
“For the first time in NCOID’s history, special programs are planned for the presentation of professional and technical issues of the insurance industry. These programs, originally conducted by Iran Insurers Syndicate and Professional Insurance Institute, are in the form of 8 professional panels to be held in the evening of the second day of the conference.”
“The panels directed by Iran Insurers Syndicate are related to the following topics: ‘Sale Network and Its Challenges in the Insurance Development and Penetration Rate Increase; Insurance Agents’; ‘Sale Network and Its Challenges in the Insurance Development and Penetration Rate Increase; Insurance Brokers’; ‘Opportunities and Challenges for the Development of Life Insurance and Penetration Rate Increase’; and ‘Risk Analysis, Loss Assessment, and Actuary’.” He added.
“Likewise, the panels led by the Professional Insurance Institute are about ‘Digital Disruption and Insurance Penetration Rate Increase’; ‘Reformation of the Structures and Insurance Penetration Rate Increase’; ‘Protecting Policyholders’ Rights as the Major Factor of Insurance Penetration Rate Increase’; and ‘Technical Innovation and Insurance Penetration Rate Increase’.”
After explaining the details of the NCOID programs and agendas, Dr. Kordbacheh’s talk was directed toward the insurance industry’s status quo, “The insurance penetration rate has increased from 1.1% in 2009 to 2.38% in 2018. This indicates that despite Iran’s economic conditions, insurance industry has survived with an 8 percent growth.”
“Of course, a comparison of the insurance penetration rate of the country with that of the world which is 6 percent and countries such as South Korea which is 12 percent, the conditions are not sufficiently satisfactory in Iran. In fact, if we assume that the annual growth rate of the insurance industry is consistently preserved in the coming years, we will not meet the 7% rate projected in the Sixth Development Plan of I. R. Iran for 2020. Accordingly, the more accurate forecast rate in that year would be 2.7%. That is to say, if the growth pace of the insurance industry is maintained as its past decade record, in order to reach to the average global rate or the projected 7% rate in the Sixth Development Plan, we require at least 15 years to come.”
Conference Inauguration
With the participation of the President, Members of the Board, and directors of Central Insurance of I. R. Iran (Insurance Supervisory and Regulatory Authority), General Secretary of Iran Insurers Syndicate, CEO and Directors’ of the insurance companies, managing directors of insurance industry associations, and faculty members of IRC and some universities, 26th NCOID was officially inaugurated at Alzahra Conference Center on December 3, 2019.
In his preface to the proceeding of the conference, Dr. Gholamreza Soleymani, the President of Central Insurance of I. R. Iran has stated that the index of the insurance penetration coefficient indicates the ratio of the written premium to GDP of the country and this is included as one of the indices of social welfare.
He believes that the significance of the insurance penetration coefficient can be evaluated from several perspectives and the growth of insurance development not only benefits the insurers and the industry activists but also the economy at large and other economic activists as well.
Referring to the insurance industry as one of the key economic players and the major risk management institutes, Dr. Soleymani in the preface mentions that “The insurance industry has a significance share in improving the current and future condition of its beneficiaries and with its various risk assumption tools, helps the society move faster and smoother in various sections of the economy.”
The President of CII believes that the organization under his management “is committed to promote the insurance economy in order to improve the public welfare and security and to increase the penetration rate in the country to meet the projected 7%.” The current penetration rate in Iran is 2.38 percent.
Eight Percent Annual Growth of the Insurance Penetration Rate
The Head of IRC in the preface of 26th NCOID proceedings has mentioned that “In the past decade, the insurance penetration rate has improved approximately from 1.2 to 2.38 in 2018. This means that it had experienced an eight percent growth in this period.”
He believes that this growth shows an impressive performance of the country’s economy.
Insurance Industry Must Cover Society’s Risks
Dr. Kordbacheh in his keynote speech at the inauguration ceremony of 26th NCOID on December 3, said: “Today, insurance and the insurance industry plays a significant role in the current global economy. This role is merely beyond a financial industry. Hence, out of the $85 trillion GDP of the world, $5.200 billion is produced by the insurance industry that is generally called insurance penetration rate.
“Although in the previous years, our insurance industry has not experienced a significant growth as mentioned in our last speeches, considering the conditions of the country, the eight percent growth of the insurance industry is something to be proud of. This is while the economy has faced with devastating states in the previous years.” Dr. Kordbacheh said.
“The projections of the global economy says that there is a silver lining for the insurance industry and the reason behind this is that today’s societies are getting more complicated and sophisticated causing more complicated perils to come.” He added.
“The insurance industry can cover the complicated risks in the societies. We must prepare ourselves for such a future and act more vigorously in our roles assigned to us.” He added. “NCOID conducted with the participation of the industry community, will be different from the previous years. In this conference, the papers are not solely academic. They are more applied-oriented and are prepared with the help of the experts and professionals from the insurance companies and it is hoped that their results are employed in the industry.”
Report of the Academic Taskforce of NCOID
Dr. Leili Niakan, the Scientific Secretary of NCOID, in her report given in her keynote speech at the inauguration ceremony said: “The achievements of the 25th NCOID have brought about the fulfillment of the objectives of the present conference.”
In this report, she gave an outline of the previous year’s NCOID and the insurance industry acting based on its driven policies. Creating an informed transformation in the insurance sale methods, claim handling, pricing low risks, customer attraction, and increasing insurer profits, exploiting innovation and new technologies are some of the policy achievements of 25th NCOID. The previous conference with the main theme of ‘Insurance Industry, Innovation, and Information Technology’ was an attempt to promote the innovation and technology in order to attract the attention of the industry community to these great potentials in the society.
“In order to conduct the 26th NCOID, a thorough analysis of the previous conferences were taken into account. The analysis was mainly directed toward the content and execution.”
“Accordingly, the execution procedure of 26th NCOID was outlined. The conference organization was set up and pertaining to the content production, call for paper, tailored paper authoring, creation of internal scientific taskforce, and determining the main themes of the conference, all the necessary works were carefully accomplished.” She added.
“Analysis of the reports regarding the internal scientific taskforce, poster design, creation of Persian and English conference websites, passing the bylaw for identifying and admiring the insurance industry honor roll, holding conference policymaking council and scientific committee meetings, assembling professional panels, and assigning papers for poster or oral presentations were some of the pre-conference measures that were thoroughly taken.” The Scientific Secretary said.
“Based on the conference agenda approved in the first meeting of the conference policymaking council, the conference was divided into two sets of sessions, namely scientific sessions and industry sessions where the conduct and management of the scientific sessions were assigned to IRC to accomplish.”
Referring to the peer review procedure, Dr. Niakan said: “The paper refereeing was assigned to each relevant panel according to the directive approved in the first meeting of the conference scientific committee and the initial refereeing was done by the panel mediator and panel members gave the final decision about the paper.”
“Out of 161 papers received by the NCOID Secretariat, 56 papers were chosen for publication in the proceedings and 27 papers were decided to be presented as posters, today. Five papers are also added to the proceedings due to accumulation of the paper presentations.”
National Center of Risk to Be Established
“We will establish the National Center of Risk in Iran. If founded, it will help the insurance industry and any decision that deals with any given risk.”
This is what Dr. Soleymani, the President of Central Insurance of I.R. Iran said in his keynote speech and added: “I am deeply indebted to Iran Insurers Syndicate, Insurance Research Center, and other segments of the industry, Alzahra University, students and researchers that have helped the conference be conducted. They all were so cooperative in their contributions.”
“Analysis of challenges is an effort by experts, directors, students, and graduates that must be taken. Cultural points must be given to people and the culture of utilizing insurance must be promoted in the society. The question that why insurance culture has not been developed in the society is a question that this conference must be after to answer.”
“The analysis of this point that how we can turn the present insurance industry challenges into opportunities and how to use these opportunities to increase the insurance penetration rate in country’s economy is of utmost importance.” The President of the Insurance Supervisory and Regulatory Authority added.
“In the insurance industry, Central Insurance of I.R. Iran and insurance companies are involved and have fairly acceptable contributions and we must admire the insurance companies that help the industry develop. However, these companies have many problems. These problems cannot be simply analyzed by them. They expect that people be informed about the insurance industry and expect that the insurance industry services to be provided more efficiently and productively to their customers.”
Referring to this fact that in the insurance industry, there are several challenges, Soleymani added: “We must accept that this conference must not be ended with just praise and admiration, though expressing gratitude is appropriate.”
“We must investigate to see what problems exist. In the modern world, insurance services and products are offered with much more quality and affordability. Why China has been successful and its economic growth has surpassed that of Europe and US. In the second rank, it is India that is developing its economic growth because it tries to sell its commodities with much affordability and has increased their quality.”
The President of Central Insurance of I.R. Iran also highlighted the need for a reasonable insurance premium that does not disregard the quality of the product: “Insurance industry products must be more competitive and we must think how to decrease the pricing of the insurance services.”
“Decreasing the insurance services does not suggest a price breakdown but it must be investigated whether in a healthy and constructive competition which services can be made more affordable.”
“It must be investigated how we can make the insurance products more reasonable without sacrificing the quality. One of the reasons that people are not keen to buy insurance products is that the insurance services are not economical. If affordable insurance products are offered, people will be much more eager to buy insurance products. We must do something that all the people insure their houses.” He added.
“By doing more precise actuarial calculations, considerable services can be offered with minimum cost. In complementary health insurance, there is a significant issue that must be considered in this conference. Health insurance in the world is a challenge which even developed countries are facing with. Even the Obama administration was also engaged with such a challenge. Decreasing the pricing of the insurance products does not suggest a price breakdown. It has been observed that some companies are offering some insurance products with nontechnical price tags.” He added.
“Regarding risk, we are also faced with a significant issue and it requires substantial effort and synergy. We are so much worried that whether risk is managed in companies or not? Unfortunately, it has been observed that some companies are attentive to internal accounting management and other relevant issues but very few consider risk management in their respective companies.”
The First Day Panels
According to PRIAO report, in the first day of the conference, a collection of research papers approved by the Scientific Committee were analyzed in 9 professional panels. The members of these panels were composed of Members of the Board of Central Insurance of I. R. Iran, CEO and Directors of the insurance companies, and faculty members and researchers at IRC and some universities.
In the scientific sessions, the subjects of the professional panels were as follows: Insurance Penetration Rate: Stylized Facts; The Role of Culture, Motivational Stimuli, Marketing, Customer Satisfaction in Insurance Penetration Rate; The Role of Pricing Approaches, Quality of Insurance Services, Prime Cost on Insurance Penetration Rate; Insurance Products, Need Analysis and Tailoring Insurance Products based on Customer Needs; The Role of Institutional Factors (i.e. Legal and Regulatory), Transparency and Public Trust on Insurance Penetration Rate; The Role of Insurance Industry Structure and International Relationship on Insurance Penetration Rate; The Role of Insurance Instruments and IT on Insurance Penetration Rate.”
On December 4, the industry sessions were held in the Milad Tower Int’l Conference Center.
Preparation of the Insurance Industry for Covering Country’s Risks
Dr. Soleymani in his keynote speech appreciated the presence of the President in the conference and said: “The insurance industry is quite ready for covering all the risks of the country and with the help of relevant establishments will bring peace and confidence to the society.
The President of Central Insurance of I.R. Iran referred to the evident necessity of founding risk management center for the country and explicated the latest insurance achievements and stated: “The diversity of insurance services in the country comprises of 25 various products. This is where the society only knows and leans more toward some certain lines.”
The Head of High Insurance Council announced the launch of an online insurance sale center and said: “Based on the measures taken and efforts expended by the industry activists in the realm of cyber technology, reaching to international standards is not far-fetched hope.” And he concluded: “The insurance industry will move on with its intent to promote various types of health insurance coverages in line with the transformational health plan. This is one of the significant programs of the Hope and Planning Government.”
Privatization Capacity of the Insurance Industry
Announcing the stock offering of Alborz Insurance Company, the Ministry of Economy said: “The insurance industry has the capacity to be completely privatized.
In his keynote speech, Dr. Farhad Dezhpasand, the Ministry of Economy stated: “Since Iran has a developing economy, it requires a strong support from all sides in the insurance industry.
“Today, we are proud to mention that 500 billion dollar asset is covered by insurance and this indicates that the industry is moving in an efficient way.”
Referring to the developmental conditions of Iran that has led governments to support the insurance industry, the Minister added: “Since the government resources are scarce, the insurance industry can collect and direct the minimum [financial] sources of the society toward a warehouse where they are deployed for the ease of the development.”
Regarding catastrophe insurance fund, Dr. Dezhpasand said: “Unfortunately, the establishment process of catastrophe insurance fund has taken a long time during the previous years, yet since 2013, the measures have been fairly serious.”
“Since Iran is located in the catastrophic belt, the households, businesses, and even the state must be quite concerned for any coming catastrophe.” He added. “In the flood of 2019, it was evident that those who had insurance could simply recover from disaster.”
Gratifying the growth of the insurance penetration rate during past few years, he said: “The insurance penetration growth has shown a decent development. However, it is relatively far from the expected 7 percent penetration rate.”
“Nevertheless, this is the path that must be taken and private insurance companies must secure necessary cooperation for reaching this target.”
Highlighting that today there is only one governmental insurance company, he added: “We try to offer the 20% stock of Alborz Insurance Company up to the end of this year.”
“The insurance industry has the capacity to be fully privatized.” He added. “And a maturing insurance in a country like Iran can play a significant role in facing with sanctions.”
Insurance Industry Honor Roll
Dr. Gholamhussein Jabbari, a pioneer in the insurance industry, was introduced as an Everlasting Figure of the Insurance Industry.
Started his business in commercial insurances since 1956, Dr. Gholamhussein Jabbari, after the foundation of Central Insurance of I.R. Iran, was assigned as the Technical and Reinsurance Deputy of the regulatory authority in 1971 and was held in that position up to 1978. After the revolution, he was chosen as the Vice President of Central Insurance of I. R. Iran until 1984.
In his keynote speech, Dr, Soleymani, referred to Dr. Jabbari and said: “Fortunately, after several years and in the presence of the President, we are proud to introduce Dr. Gholamreza Jabbari as the Everlasting Figure of the Insurance Industry.”
He also referred to the establishment of risk management center and added: “The insurance industry in line with the health transformation plan has attempted to cover people through complementary health insurance for individuals, groups, and households.”
With regard to the commemoration of the Day of Insurance, he said: “It is more than 85 years that insurance [industry] has been active in Iran and up to now, a IRR 160 trillion portfolio is being run by the insurance companies.”
“The purpose of active insurances in Iran is securing personal, general, and provincial losses.” He added while emphasizing the microinsurance plan by the Central Insurance of I.R. Iran.
“Compared with 2.9% in UAE, the 2.4% penetration rate of Iran is low and when compared with other countries including Turkey, Saudi Arabia, Pakistan, Egypt, and Kuwait, Iran stands slightly higher. This suggests that our rank in insurance is outstanding in the region.” He added.
“The Central Insurance of I. R. Iran strives to establish risk management center.” He emphasized. “The insurance industry in line with the health transformation plan must try to cover people through complementary health insurance as individuals, groups, and households.”
“Up to now, 13.5 million people have been covered by the complementary health insurance.”
“In return for the extensive insurance offerings in the country, we expect that the state exempt value-added tax and all other direct taxes in order to encourage people to purchase insurance.”
“Unfortunately, life insurance portfolio among other insurances is 14.5% while this number is 60% in the world.” He regrettably added. “This is while 80 percent of the insurance portfolio of the country is dedicated to causality and fire insurances.”
“Today, with the presence of the President, the policies are digitally issued and losses after being thoroughly assessed, are paid online.”
President in 26th NCOID: “All the People Must Be Covered by Insurance”
The President of the I. R. Iran that had accepted to participate in 26th NCOID, in his keynote speech said: “The constitutional law mandates us to cover all the people with insurance.”
Dr. Rouhani highlighted. “The eleventh government administration has done a great job and that is Public Health Insurance Scheme. This is where many developed countries have not been able to implement their health insurance plans. But we have done it in this very tough time.”
“The President of Central insurance of I. R. Iran who accompanied me to Golestan Province stricken with flood, reported to me that all the houses that were covered with insurance even with a short period of premium payment were included in the compensation process.”
“This is highly appreciated and must be publicized by IRIB and other media networks. People must be advised to buy casualty insurance and that it will have effect on their lives.” He added. “Thus, I call all the insurance companies to be active in this area and encourage people since insurance culture can help people especially in life insurance lines.”
Referring to the heavy burdens loaded on the insurance companies in this regard, he emphasized: “Imports, exports, and investments at the time of sanctions are risky since it is not a normal situation. In this condition, you must start off.”
“In one side, you must be coordinated with those who feel their activities involve risks, and in the other side, you must cooperate with insurance companies of other countries especially in high cost risks such as giant tankers since the prices of ship and oil are highly considerable.”
“Insurance like banking sector is being sanctioned hence selling petroleum and other expert products are in the sanctioned list, as well. Thus, insurance is the subject of the initial US sanctions and this indicates the significance of the insurance. Since without insurance, a risk can be so high that nothing can be done afterwards. For any investor, farmer, and any human being, the capability to tolerate a risk up to some points is fine but a 50% high risk situation is not tolerable for an individual and here is where s/he must rely on something to compensate for his/her losses.”
Reinvigoration in Commemoration of the Insurance Day
Dr. Rouhani said: “I hope that this day is the commemoration of the insurance industry and the industry activists are reinvigorated for more good service to the people of our beloved Iran.”
“The nature of insurance is security for the society. Insurance wants the people of the society such as producers, farmers, technicians, entrepreneurs, anyone having a workshop, and normal people to be confident at the tough times.” He added. “Insurance wants to tell people that they are not left alone at the time of harms and problems and they have an aide that is called ‘insurance industry’”.
“The insurance company is beside you and it will assist you. The insurance business, the industry performance, and their associates must be in a way that people feel tranquility and peace. If God forbids, an accident happens to one, s/he will be recovered at the shortest time possible.”
“Today, possibly the condition is much better. Before the revolution, even if we were not the faulty driver in an accident, as soon as we decided to go after our compensations, we would regret and get back.” He added. “Promptitude is embedded in the elimination of bureaucracy, agile assessment, and payment of the losses.”
Iran Exposed to Certain Risks
The President said: “At the present conditions, the insurance industry has a special position. We are a nation exposed to certain types of risks. Over the last 41 years, we have been under harshest sanctions ever especially in recent two years. However, the 11th and 12th government administration has strived to reduce risks to the minimum point. Risks cannot meet zero point but can be mitigated.”
Referring to the special natural and geographical condition of Iran, he added: “Iran like many other countries is located in a seismic zone and there is no escape from it. Japan is also in a seismic zone. In my trip to this country, we could feel earthquake several times in a single day. But the buildings are strong and people at peace. Strengthening buildings blocks the development of the risk.”
“But in a village that is all made with adobe and clay, you may feel more risk with just an earthquake with a magnitude of 5 in Richter scale.”
“We ask you and the people to bring your life closer to the insurance. The insurance culture must be promoted. This is the job of the media and the virtual reality to promote such a culture.” He emphasized.
“When a culture is reformed, people will feel that insurance is beneficial for them and will be willing to go after it. Of course, insurance companies must provide incentives for the people in a way that when they refer to an insurance company for a loss and with the help of e-Government, in the shortest time and very efficiently, their payments are done.” He added.
Highlighting the necessity of agile work in loss payments, the President added: “Of course, this does not suggest that insurance companies must not have their own precautions. This is where most of the insurance companies are being run by the private sector and while being after their own profit, are trying their best to handle people’s affairs.”
Referring to this point that out of 32 re/insurance companies, 31 are private, he said: “When a company is run by the private sector, it will try hard for its own benefit. The more the insurance culture is promoted in the country, the more the insurance industry will boom, and the more the capital market will move. Because, the private sector always enters an investment that it is confident about its profit.”
Stating that the 12th government has faced two huge disasters in its administration, Dr. Rouhani said: “One was the earthquake in Kermanshah that was unique in its kind since it was deep with a high severity. It brought about huge damages to the cities and villages.”
“[In that event], 107710 houses were totaled ruined or partially damaged that required renovation or reconstruction. All the houses that were renovated and those that required reconstruction were handled within a year and this was a huge at the meantime admirable job. Of course, there were some houses that were left as they were for some [technical] reasons.”
“In an earthquake disaster, 107 thousands houses were damaged that was partially compensated by us and partially by the insurance companies. In 2018, we were busy with Kermanshah earthquake. We had not finished our job there, yet that flood struck 25 provinces of the country in Farvardin (late March) 2019. The flood was reported as unprecedented in the last 50 to 60 years.”
“In this late flood event that harmed 21 provinces where 147 thousand houses were damaged, the renovation job has been almost over and some new constructions have been started.” He added. “It is planned that we finish this up to the end of this year. In a year, handling 147 thousand houses that were damaged or totally devastated is a huge job.”
Risk Management is the Government Job
Dr. Rouhani said: “Nevertheless, I must mention this point that since you are the experts in loss and risk mitigation in the life of the people, the same duty is assumed by us in some other way. As a state, we must reduce the risk for the people and help the society achieve excellence and growth.”
Highlighting the fact that where our rights are not secured, we must stand beside each other hand in hand, the President stated: “The insurance industry beside the capital market and banks, beside the entrepreneurs and the workforce, and beside the university, must experience consolidation. This year, on December 7, this point must be taken into account that what is the resistance path against the terrorist economic acts of the US? In all the universities and among all the students and professors, the subject must be summarized in this motto: to be against terrorism and economic terrorism and our readiness for facing with the brutal sanctions.”
Dr. Rouhani highlighted the fact that “When a flood or earthquake strikes, all the media institutions are ready to help and people are there to help as well. However, while a relative peace is maintained, we are left with the people and all the media institutions are gone and we must help build the houses. Thus, construction process reports must be given to the people.”
“When a tornado and a flood strike the US and cause a huge devastation, in a year, the people feel their lives are as before. Go and investigate about this. In the Europe, if an earthquake occurs, the devastations are recovered within several months. We are one of the few efficient countries in this area and the insurance companies must start off their jobs. Because if houses, businesses, offices, banks are insured, this can alleviate many of the pains, miseries, and sorrows and this will bring about positive effect in the society.”
Referring to the state budget 2020, he added: “Despite all the problems the government is faced with, the budget is formulated in a way that some providence is necessarily considered. We will not only increase the personnel’s wages but we will mobilize the construction budget.”
Stating that in the past 6 years of the government life, the construction budget has been increased six times, the President added: “In 2013, the construction budget was IRR11 trillion and this number in the next year will be IRR60 trillion.”
Referring to some misunderstandings that in the sanctions condition, the government is only able to pay its personnel’s wages, he said: “The government even in this condition is taking many effective measures to develop the country. However, if sanctions, Zionist crimes, reactionary states in the region, and the radicals in the US were not there, the country’s condition was reasonably in an excellent position.”
“We understand that today, people especially those that receive a certain wage, are in pressure. However, the economists must explain to the people that if the price of something has increased, it is natural but if it suddenly doubles and the wages are remained constant, life can be very hard. This is the reason that government has allocated a livelihood allowance for 18 million households comprising 60 million population of the country up to the end the 12th government lifetime.”
“This livelihood allowance was initially planned to be given as credits to the people for purchasing goods. However, due to the incoordination of the Central Bank with shopping malls and that this could require a longer period of time, we were made pay cash to people.”
“Some criticize the state that why it came with this idea. This is while we must think about the bright future of the country and the years to come. This is not morally correct that I say to myself that I am only President until 2021 and the year after is not my business.” He said.
“We are one nation and one country. The officials will change but the path, the direction, the law, and the country’s development continues.”
Referring to the accomplishment and the connection of the railroad of Chabahar to Zahedan, he stated: “It is possible that these efforts will not come to fruition up to the end of this government. However, this is a huge and significant work.”
“The accomplishment of the railroads of Rasht-Astara and Chabahar-Zahedan will bring about a tremendous change to the transportation and transit of the country. Through these railroads, 6 million tons of freight will be transported and this will help develop the insurance industry of the country.”
“I ask the Minister of Petroleum to consistently report to the people what has happened after rationing the oil, how much savings have been generated, and how much self-sufficiency in oil production will be maintained by this policy.”
“Oil production of the country in the initial years of the state was 52 litres per day and now, this number is 107 million litre and this was another significant measure by the state.”
Referring to the increase in wasteful oil consumption in the country and that this year alone experienced a 10 percent hike in oil consumption, said: “We have concluded that oil consumption must be restricted in the country so that in the future, we will not be faced with oil scarcity that usually leads to oil import.”
“In one hand, we were after the savings that would be generated out of the rationing of the oil among 60 million of the population that are mostly from the middle class in the society. It was instructed to the Planning and Budget Organization and Ministry of Cooperatives, Labor, and Social Welfare to give reports on the developments of this issue to the people. They must report how much saving is generated due to these restrictions and how much is directly paid to the people. This is to let people know that whatever the government promises, will stand for it.” He added.
“The state has approved that all the oil consuming vehicles such as taxis, vans, and other passenger cars must be made hybrid. Four hundred thousand vehicles are included in this plan. By this we are able to reduce the air pollution and increase the welfare of the society. In order to implement this plan, IRR7 trillion is required.” He said.
Dr. Rouhani concluded, “The state will execute similar plans in order for the people to live more peacefully.”
Evening Panels of the December 4
For the first time in NCOID’s history, special programs are planned for the presentation of professional and technical issues of the insurance industry. These programs, originally conducted by Iran Insurers Syndicate and Professional Insurance Institute, are in the form of 8 professional panels to be held in the evening of the second day of the conference.
The panels directed by Iran Insurers Syndicate were as follows:
• ‘Sale Network and Its Challenges in the Insurance Development and Penetration Rate Increase; Insurance Agents’;
• ‘Sale Network and Its Challenges in the Insurance Development and Penetration Rate Increase; Insurance Brokers’;
• ‘Opportunities and Challenges for the Development of Life Insurance and Penetration Rate Increase’;
• ‘Risk Analysis, Loss Assessment, and Actuary’
The panels led by the Professional Insurance Institute were conducted on the below subjects:
• ‘Digital Disruption and Insurance Penetration Rate Increase’;
• ‘Reformation of the Structures and Insurance Penetration Rate Increase’;
• ‘Protecting Policyholders’ Rights as the Major Factor of Insurance Penetration Rate Increase’;
• ‘Technical Innovation and Insurance Penetration Rate Increase’
Side Exhibition of 26th NCOID
The participants of the conference had given a chance to visit 30 booths dedicated to insurance companies and relevant industries. The number of the visitors was reported to be considerable and the participants had rated their visit ‘satisfactory’ in most of the cases.
As a side event, the ceremony of the best insurance officer of the insurance industry, the best public relation office, and insurance reporter was conducted in the second day of the conference.
You can access the photos of the 26th NCOID in the gallery section of IRC website.