Economy, Business And Markets

Insurance Agents to Be Rated

Insurance Agents to Be RatedInsurance Agents to Be Rated

The Central Insurance company of Iran –the industry’s regulator---has prepared a set of guidelines for insurance firms to rate their agents, the CII deputy chief for supervisory affairs said on Friday.

 “The guidelines include a set of criterion for assessing their    performance and how to rate them, Habib Mirzae was quoted as saying by Fars News Agency.

According to Mirzae, the standards for rating the agents include their educational background, number of employees and their portfolio.

CII is aiming to finalize the guidelines by the end of the current fiscal year that started on March 20. “The instructions are currently being studied by insurance firms. Criteria are designed to be flexible and each company can tweak the details based on their internal policies.”

The measures allow agents to be rated only after three years in the job. It would pave the way for insurance agents to expand the scope of their career after they are rated. The authority to issue policies and a bigger share of premiums are among the possible benefits.

 Mohammad Ibrahim Amin, CII head had announced earlier that rating the domestic insurance companies is one of the priorities of the company in the current year.

CII’s latest data for 2014-15 shows there are close to 38,926 agents providing sales services to 29 companies in the gradually growing sector. Almost half of the agents were working for small companies, while close to a quarter of them were directly working for Iran Insurance Company as the only state-owned and the biggest insurance firm.

Another quarter directly work for the four major private companies (Dana, Asia, Parsian and Alborz). These agents are sole agents and can only sell insurance products from a single company. Almost 80% of the premiums earned by the insurance companies are produced by the agents.