A comparative study of the duties of insurance supervisory in Iran and selected countries

Document Type : Original Article

Authors

• Leili Niakan ¹
• Fatemeh Atatalab ²

¹ Assistance Professor, Insurance Research Center

² Personal Insurance Group, Insurance Research Center, Tehran, Iran

https://doi.org/10.22067/economlaw.2023.81302.1255

Abstract

By compensating financial losses, insurance institutions guarantee the growth of the national economy and enable the continuation of economic development planning. They also play a special role in monetary and credit policies, and by concentrating national funds in the form of insurance premiums and creating technical reserves, provide the potential possibilities of large investments in various economic channels. Supervision of insurance operation has a central presence in process of economic growth and development, and development of insurance operation is closely related to the quality of supervision. Therefore, it is vital to create a structure in which goals and functions are presented clearly and appropriately, and where necessary, takes action according to the weakness of the insurer/system.

In this research, while examining the basics of supervision and regulation in insurance industry, the structural and institutional framework of the insurance supervisor in selected countries has been studied and the powers and responsibilities of these institutions in line with effective supervision and regulation have been examined and compared.

The results show that logic of regulation in the insurance sector is to protect the interests of the insured, promote the stability of the insurance market and prevent inappropriate behavior of insurers.

Monitoring the performance of insurance companies can be planned in many technical, economic and legal branches that incudes controlling the conditions of establishment, granting and revoking the activity license, compatibility of policies general conditions with laws, control of technical and financial affairs from legal point, control of loss payment and settle accounts. Sufficient power, legal support and financial resources; operational independency especially from political institutions and insurers; accountability and transparency in functions and powers; possibility of hiring, training and maintaining human resources; level of market efficiency and level of access to information are the most important prerequisites for the effectiveness of supervision.

Keywords

• Supervision
• Regulation
• Structure
• Operational independency
• Accountability

References

 

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