The Central Insurance Company of Iran is planning to establish an innovation center that will extend support to knowledge-based companies and startups active in the field of insurance.
Majid Behzadpour, the head of CII, made the announcement and said, " The Central Insurance Company of Iran needs to prepare the ground for the technological growth of the sector … Insurance companies and the regulatory body need to embrace technology," he was quoted as saying by CII's website during a meeting with officials from the Vice Presidency for Science and Technology.
The official called for closer ties with the Vice Presidential Office saying that the sector is dedicated to find new solutions to provide better services to the public.
"The insurance industry [so far] has been unable to offer robust innovative solutions. Focusing on improving services related to information technology can and should help boost the penetration rate of this sector," Behzadpour said.
He did not provide details about the innovation center.
Parviz Khosroshahi, the deputy head of CII, also elaborated on the regulator's technological achievements by referring to the drivers' risk assessment platform, which is aimed at reducing car accidents.
He also expressed CII's readiness for devising solutions to address all the needs of innovative companies.
CII has long called for expanding innovation as a need to expand the penetration rate of insurers and enhance the quality of services.
CII had earlier announced that the insurance industry is about to unveil new innovative products and services in the fields of information technology, healthcare and Islamic insurance, adding that it had approved nearly 50 proposals presented by insurance firms.
A recent study showed that as competition increases, insurance firms are showing greater interest in developing innovative services to attract customers.
Bimeh-Dari Novin, a journal specializing in the key sector, conducted research on the performance of insurers vis-à-vis innovation and found that innovative proposals approved by CII reached 14 in the fiscal year ending March 2019.
A review of CII approvals over the past 15 years shows that the average number of innovative insurance services barely exceeded five each year.
Most of the new solutions were related to vehicle, medical, liability and car accident categories.
The study also showed that transforming the auto accident insurance segment was the main focus of insurance companies between 2007 and 2011. It centered on vehicle insurance categories for two years. However, innovative solutions related to medical insurance outnumbered other segments after 2013.
Figures also indicate a growing tendency to innovate in life insurance. For the first time in the industry's history, three proposals related to this category received the CII approval in the year to March 2019.
Iran Insurance Company, the sole government insurance company and the largest in the country, accounted for the highest number of innovations – 21.15% – during the past 15 years.
Sina and Mellat insurance companies were next with a 10% and 8% share, respectively.
Comprehensive insurance for drivers heading to Iraqi Kurdistan, rural residents and insurance for foreign tourists are among innovative schemes developed by IIC.
