The Central Insurance coverage firm of Iran agreed to evaluation its newly-announced framework about agent and brokers’ commissions, which has raised objections amongst insurers.
The choice was made throughout a gathering on Thursday, wherein representatives from insurance coverage firms and gross sales community expressed their issues with the CII officers.
Final week the CII revealed the brand new framework, setting new caps for brokers and brokers’ commissions from promoting insurance coverage insurance policies in life and non-life classes. The brand new rule was set to come back into impact as of September 22.
The CII officers say that the brand new framework would assist enhance the gross sales community’s revenue. The gross sales community, nonetheless, imagine that the brand new charges are set rapidly with out being totally studied, Risknews reported.
“Brokers don’t favor the brand new charges…Policymakers have made the choice with out getting brokers feedback…The brand new framework is more likely to weaken the gross sales community,” Insurance coverage Brokers Union mentioned in a letter despatched to the CII.
Risknews’ research point out appreciable decline in brokers’ earnings (as much as 25%) when the commissions are calculated primarily based on the brand new charges.
The variety of insurance coverage brokers registered an annual development of 17% to achieve near 64,000 by March 2019, in line with the CII. The overall variety of branches of insurance coverage corporations throughout the nation reached 1,258 by March 2019 – up 6% in comparison with the yr earlier than.
The overall variety of brokers elevated by 35% and reached 834 by the tip of the earlier yr.
Iran Insurance coverage Firm, the biggest and sole state owned insurance coverage firm, has the biggest gross sales community with greater than 9,000 brokers and 209 branches.
The privatized Asia Insurance coverage Firm comes subsequent with 3,200 brokers and 100 branches. Pasargad Insurance coverage Firm ranks third with 73 branches and a couple of,700 brokers.
— to financialtribune.com