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CII Supports Launch of Insurers Union

CII Supports Launch of Insurers UnionCII Supports Launch of Insurers Union

Insurance brokers have called for the establishment of an official union that would enable them to advise policy buyers and help promote healthy operations in the industry.

Presented during a meeting with Abdolnasser Hemmati, the head of the Central Insurance of Iran, on Wednesday, the proposal was welcomed by Hemmati who called for speedy measures for the launch of the union.

“The new body could help the industry along with the Iranian Insurance Syndicate and Insurance Brokers’ Guild,” CII’s public relations office quoted Hemmati as saying.

According to Hemmati, promoting the quality of services offered by insurance brokers is a prerequisite for enhancing the industry.

“We back the idea of a union, since it would help the public recognize the difference between agents and brokers, and trust brokers as their advisors for purchasing the [right] policies,” he said.

“When I first started my career as the head of CII in 1996, there was only one single broker operating across the country. At present, 550 brokers are active in the industry.”

With considerable experience in running the insurance industry’s regulatory body, Hemmati has implemented crucial reforms among insurers, since he was reappointed as the head of CII three months ago.

The Central Insurance of Iran, the industry’s regulator, revoked the licenses of 58 law-breaking brokers and agents, in response to complaints filed by policyholders in the last Iranian year (ended March 19, 2016).  Of the total number of licenses revoked in the previous fiscal year, 25 belong to insurance brokerage companies.

According to CII’s Office for Supervising Professional Qualification, infringing on the rights of the insured, embezzling insurance premiums, having irregular work hours, running a second business and sending flawed documents to insurance firms were the most common reasons for revoking these licenses.

Despite CII’s measures, insurers have not been given any alternative options for ending their illegal activities, including the practice of undercutting each other for gaining a larger market share.

 Localization

In another recent move, the Iranian Insurance Syndicate has started to revive the operation of its provincial councils.

“Provincial councils were primarily established to coordinate insurance companies’ relations on a local scale. IIS is determined to revive them because they can help enhance the industry,” Ali Akbar Olia, the syndicate’s secretary, was quoted as saying.

“They are potentially capable of identifying the industry’s problems and negotiating with officials for solving issues.”

Olia noted that insurers have been neglecting the importance of using data in their planning, which is the most valuable resource.

“We need to hire young talent to promote innovative technologies in the industry,” he said.

Financialtribune.com