Insurers Need to Innovate, Improve Risk Management

Minister of Economy Ehsan Khandouzi enumerated Sunday his ministry's expectations from the insurance industry in a meeting with CEOs of the insurance companies.
Khandouzi called on insurers to focus on the diversification of insurance products using innovation and technological progress, newswires quoted him as saying.
"Instead of dumping and unhealthy competition in premium rates, insurers need to concentrate on risk-based coverage," he said.
Risk-based pricing means charging rates depending on different risk characteristics, and is a method for raising efficiency in pricing insurance policies.