In the first meeting of the Strategy Committee of Life Insurance Development Studies, the President of Central Insurance of I. R. Iran (CII), said: “In the Amendment Document of the 1400 Budget Plan, with the aim of homogenization, high amounts are allocated for the retirees and given the ageing population of the country, paying such high amounts will place the state under considerable pressure in the coming years.”
“The strategy for tackling such an issue in the national/macro level is withdrawal from the present compulsory form of retirement and substituting it with the life insurance. This gives way for developing new life insurance products and redesigning the present products.” Dr. Soleymani said.
With reference to life insurances as one of the bridging links between the insurance industry and capital market, he added: “Given the recent public experience of direct purchase from the capital market, the insurance industry can work more comprehensively with the present investment funds and will be welcomed more openly.”
The President of CII observed that the most significant challenges of the public when facing with the life insurances is how to calculate and determine the value of each policy in the real time. Thus, he called for the use of capital market models in the life insurance lines. This, on the other hand, fortifies the possibility of forming secondary markets for the life insurances.
At the end of his keynote speech, Dr. Soleymani referred to the willingness and interest of CII in dealing with such an issue in thee realms: amendments of the rules and regulations in order to facilitate life insurance development, prevent any type of parallel work, and help eliminate any barriers in life insurance development in the country. Finally, he called for proposals and action plans regarding the life insurance development in the country.
In his speech, Dr. Kordbacheh, Head of IRC, referred to IRC’s measures in planning and implementing studies in the field of life insurance in recent years and said: “Life insurance development fundamentally takes on various aspects including investigative, promotional, cultural, and developmental that each requires more serious activity and more willingness from the insurance industry, CII, and IRC”.
He wished that the committee would be able to formulate and implement the aforementioned plans in order to provide valuable assistance to CII.
It must be noted that given the life insurance significance in the economic growth and in order to fulfill the objectives and visions of the insurance industry in maximizing the life insurance shares and promoting its role in the economic development of the country, IRC, along with the confirmation from President of CII, has formed a committee entitled “Strategy Committee of Life Insurance Development Studies”. The committee is aimed at examining the challenges and strategies in order to develop life insurances in the insurance industry and prioritize the relevant studies in this realm. In order to discuss the role, status, and the obligations for the committee, the first meeting of the committee was conducted with the participation of President of CII, committee members including the Head of IRC, CEO of Middle East Life Insurance Co., CEO of Baran Insurance Co., CEO of Dana Insurance Co., Director General of Planning & Technical Affairs Office at CII, Director General of Life Insurance Supervision at CII, Head of Personal Insurances Research Group at IRC. The meeting was conducted on Saturday, February 20, 2021.