The chief executive officer of Dana Insurance Company on Tuesday announced the insurer’s objectives for the fiscal year that started March 21, while reviewing the private firm’s achievements in the past.
Dana Insurance was first established as a private-owned company in 1974 in collaboration with an English insurer called Commercial Union. Currently, it is the second largest Iranian insurer with 5.6 percent of the insurance market share, having 59 branches, 1919 agent companies, and 459 brokerages.
Addressing the 31st meeting of the company’s executives in Tehran, Bijan Sadegh said that his team is seeking to increase the number of their policyholders, improve their compensation system, and prepare a comprehensive strategic plan later this year.
He expressed hope that his company can make more profit in the coming months through amendments in its investment portfolio, Bourse Press reported. “The insurer aims to raise its investment portfolio to 25 trillion rials ($750 million at market exchange rate) in the Tehran Stock Exchange before the yearend,” he added.
The company’s per share profit reached 81 rials over the last year. It is now planning to raise its capital to four trillion rials over the next two years, the CEO said.
He blamed the newly-established private insurers for offering lower cost insurance premiums than those confirmed by Central Insurance of Iran, saying that the move could put them in trouble later.
He also touched upon the issue of Health Reform Plan which he said would double health costs covered by the insurers, a process that would require the insurer to focus on promotion of life insurance.
President Hassan Rouhani in an interview on national television more than a year ago announced a health reform plan. President Rouhani promised healthcare for all Iranians by 2018. He launched the plan in May 2014. Proponents say the implementation of the plan has so far reduced “out of pocket payment to 10%.”
The share of insurance segment from the gross domestic product is 1.8% in Iran, while the figure stands at 7-12% in the developed countries, making Iran’s insurance sector rank 42nd among world nations, Banker news website quoted the CEO of Parsian Insurance Hadi Oyar-Hossein as saying.
He pointed to the high ratio of the total payouts to the premiums, which is close to 90 percent, arguing that although life insurance can bring lots of advantages to people, it is not well known among Iranians yet.
Despite a surge in premiums in recent years, the insurance market is operating below its capacity due to an opaque regulatory system, heavy government intervention and a lack of public awareness of the benefits of many insurance solutions.
