Economy, Business And Markets

Transparency Required for Insurance Development

Transparency Required for Insurance Development Transparency Required for Insurance Development

Iran’s primary insurance regulator said on Wednesday “financial prosperity, effective management and transparency” are among factors playing key roles in the development of insurance industry.

“The industry will be reliable and responsible and can contribute to development and social welfare if the market is regulated and the supervision over it is boosted,” IRNA quoted Mohammad Ebrahim Amin, the director general of Central Insurance of Iran, as saying in a meeting with staff members of the CII’s Supervision Department.

To achieve financial prosperity, Amin said he believes CII needs to carefully supervise insurance firms to see if they meet their commitments under national and international regulations.

“If the firms fail to comply with laws in terms of insurance premium and predetermined ratios, the whole industry will face a financial crisis in the long run.”

An effective management, he said, means intelligent decisions are made by professional managers.

“A successful manager is able to balance financial prosperity with commitments.”

To prevent the recurrence of unpleasant incidents, he said CII aims to directly get involved in the accreditation process of deputies, board of directors and technical managers of insurance firms to help select qualified executives.

“CII needs to be transparent when it comes to the firms’ data. If a firm faces financial problem, CII should publicize its name, warning the public against purchasing insurance policies of the firm,” he added.

“Then the insurer will be given time to resolve the problem or face a dismissal of directors.”