To enhance financial literacy and risk management skills of university students, the Central Insurance company of Iran, the industry’s regulator, has proposed adding insurance courses to the curriculum of bachelor's degrees in universities.
In a letter to the Ministry of Science, Research and Technology, the CII head, Gholamreza Soleimani, stressed the role and significance of insurance services in helping safeguard the safety and viability of businesses.
Teaching insurance courses and other financial subjects in schools and universities can and will be effective in safeguarding future businesses.
"Our studies show that Iranians are not familiar with the advantages of insurance coverage. This indeed is one of the reasons behind the unstable status of businesses. Policy decisions to raise public awareness in this sphere will [also] help stabilize the economy," reads the letter published on the CII website.
The Insurance Research Institute affiliated to the CII is willing and able to contribute to preparing the educational material, he said.
Back in 2016, the CII said basics of the insurance industry had been incorporated in high school syllabus for the first time to be included in six high school textbooks, including work and technology, accountancy, and social [skills] Training for students in the seventh grade.
The CII has plans to include subjects on insurance in primary school.
Insurance industry data over the past decade shows the annual insurance penetration rate has seen a steady rise from 1.1% in 2011 it reached 2.38% at the end of the last fiscal year in March 2020. Despite the gradual improvement, Iran is still far behind the global 6% average.
The country has not yet met the goals of the Sixth Five-Year Economic Development Plan (2017-22). The long-term plan stipulates that the insurance industry should have a penetration rate of 7% by 2020.
Iranian insurance companies generated 817.3 trillion rials ($3.43 billion) in premium income in the last fiscal year posting 37.8% growth compared to the year before. Third-party vehicle insurance still tops the list alone generating one-third of the premium income.
Highlight: Insurance industry data over the past decade shows the annual insurance penetration rate has seen a steady rise from 1.1% in 2011 it reached 2.38% at the end of the last fiscal year in March 2020. However, despite the gradual improvement, Iran is still far behind the global 6% average
