For a long time now different types of insurance schemes, including third-party liability insurance, collision coverage, fire insurance, complementary health insurance, and life insurance have been publicly introduced in Iran. Although on an international level the insurance industry is one of the most lucrative businesses it has not yet properly developed in Iran.
The industry has not enjoyed widespread reception and the public demand for purchasing insurance has been rather limited, an inside source of the insurance industry, who did not want to be identified, told Eghtesad News.
“The insurance industry has not been able to build trust with clients,” the source said. “This is surely the main reason why the public still do not feel the importance of using different types of insurances.”
Criticisms
In most cases, in order to avoid paying compensation, insurance companies complicate procedures by supplementing rules with obscure clauses. “Customers thus often get lost in the labyrinth of bureaucratic procedures” the source noted.
Although the Central Insurance of Iran is the main regulator of insurance rates, cases of violations are abundant and the same type of insurance scheme is sold for different prices by different insurance companies.
Currently, one of the most famous insurance companies holds the record for the highest price on motor bike insurance, the report said without identifying the company. “During the past year, the insurance company had offered 40 percent discounts for motor bike insurance and had thus attracted several customers. This year however, while the company is no longer offering discounts on this type of insurance other insurance companies do so.”
Another matter of dispute with insurance schemes that is widely criticized is the fact that the amount which customers are required to pay for third-party liability insurance is calculated according to car models, however, the amount paid in case of accidents to the party who has suffered loss is approximately the same in different cases regardless of the car model.
Technological Updates
During the past few years with the rise of technology most businesses, trying to keep themselves up-to-date with recent advancements, have tried to incorporate relevant technologies. As an example, during the past few years, insurance marketing experts would show up at clients’ companies and houses in person to introduce services. More recently, however, online and telephone services have also been incorporated to promote the business.
Employment
The majority of insurance marketing experts are not officially employed by the insurance companies; rather, they operate under the supervision of official insurers and are based in the office branches of the companies. Some marketing experts receive fixed payments in addition to commissions on commercial transactions. Others are only paid commissions, and the rates are calculated depending on the number of customers they succeed to attract.
Marketing experts usually receive up to 60-70 percent in commission based on tariffs announced by the insurance company which they are working with. The rest of the amount goes to the insurance company or the office branch.
