OVERVIEW OF THE INSURANCE INDUSTRY: LIFE AND SAVING INSURANCE

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1 OVERVIEW OF THE INSURANCE INDUSTRY: LIFE AND SAVING INSURANCE MohammadManoochehriPoor**1,NedaPezeshkan*2,AkramSadatEshaghi3, LatifehMajlesi4,SadeghRaisi5,Hamid Haji Beigi MA Students of Business Management - Financial Management,Islamic Azad University, (Rasht Branch), Guilan Iran Abstract This article is a collection of definitions and implications for a better understanding of the life insurance industry and identifies the strategies, challenges, obstacles and problems and implement strategies in life insurances offered. Defined in this article, the history,causes,pictures, types of insurance, the insurance marketing, marketing strategy appropriate tothe role of insurance in the economy,constraints and implementation challenges and solutions are expressed in life insurance.most of the life insurance its advantages and also its lack of development in Iran. Making Iran ranks 46th in the world in terms of insurance the 75-year history of the place is not good. Keywords: Overview ; Insurance Industry; Life and saving insurance 1. Introduction Insurance industry worldwide a massive industrial complex is critical.in this century, economic activity continued to be shaped so that the insurance cover is hard to impress.insurance industry as a valuable foundation for the economy of any country is known. Dynamism, efficiency and capacity of the insurance industry, not only does the business environment will remove the insurance industry but also have much impact on the external environment (Macroeconomic environment and trade). (8) Despite huge development in the world of life insurance, development in this branch of insurance is not acceptable and demand for comparable property and liability insurance, the gap is considerably more than the average global demand, for example, in 2009, while the demand for life insurance in the global average was $ this amount lower than was $ 4.4 for Iran and this year, while 59 per cent of total demand in the world's life insurance policy has been accounted for,this number was about 7% for Iran. (13) Definition of Insurance the insurance industry is calledin terms and industry means the use of raw materials and intended for the opposing them another object is to generate income and wealth. According to the above definition it can be inferred that consolidated assets and property insurance to replace items that are lost due to injuries is essential. (7). Insurance is taken from Hindi language (Urdu) its literal meaning is guaranteed. In terms is also special warrant of life or property, the new law has become increasingly popular in the world. (15) In simplest definition of insurance is; a method for transferring risk. It has been defined in article 1 of the Law on Insurance of Iran: Insurance is a contract whereby one party (the insurer) is committed in return for payment or other funds (Insurer) in the event or of an accident damages to compensate them pay a specific amount.the insurer undertakes the insurer's obligation and the money that pays the insurer to insurer premium and what is insurance call the insurance issue.given the above, and from a technical perspective insurance is the practice whereby one party (the insurer) acceptance of risks and compliance with the rules of probability and statistics download in in return dimensional (premium) other (insurance) guaranteesin case of meet certain risk damage caused to him or someone else.it has been compensated and pay a specific amount or perform service. (15) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 979

2 2. History of Life Insurance In the history insurance marine Insurance is the first insurance business circles have been accepted and life insurance after it was introduced.the first contract of life insurance that sufficient information is known about its in June 1583insurance is Royal Exchange in London was signed.buttheyrefusedto paylife insurance investment announce their insurance contract before the death of the insured has expired and to prove their claims statedwhen the insurance for 12 months in the integratedmean of 12 months, 28 daysand according to his account after the expiration expiredand in this case the insurer refused to pay however, since that time the legislation was not perfectthe detection of deceptionand that the contracting parties shouldit was not possible to pay a premium price. Beginning of life insurance began in 1759 by cooperative fund pastor of the Church Presbyterian and mentioned Fund gained huge successafter 5 years of Insurance Companies in 1879; there were too many of themin the coastal states of New York and New Jersey. (14) History oflife InsuranceinIranlife InsuranceAgentswas startediniran byaforeigninsurance company in 1314calledVictoria. Thisagencywas dissolvedafterone yearanditsportfoliowasincluded150insurancecededtoiran insurance Companythat timewasthenewly formed, the first lifeinsurance policythatwas issuedbymentionedagency, were of mixed savings type..following the Islamic Revolution in Iran insurance Companies except Iran Insurancethat was a public companywas nationalized in Fourth of July Then Merged in September 1981and formed two insurance company names Asia insuranceand Alborz Insurance. Portfolio of life insurance of national companies were transferred Asia to the insurance company. Private insurance companies are already active in the markets this is a very active field and private insurers the absorption of Life Insurance and new plans of life insurance governments have been surpassed. (11) 3. Reasons for entering the life insurance industry supply a pension at retirement supply the risk of disability supply risks of death Create social welfare deal with social poverty financing for higher education of children and buying dowry with a long term view anti-inflammatory agent (due to absorption of liquidity) Investment and Safe Savings Benefits include tax relief on inheritance tax and no taxes (7) 4. Types of Life Insurance Life insurance can be divided into the following three categories: 1) providing a life insurance mortality risk Providing a life insurance mortality risk can be divided into two general categories: COPY RIGHT 2013 Institute of Interdisciplinary Business Research 980

3 5. Whole Life Insurance: The kind of place where the insurer is responsible for the death of the insured any time the insurance money was used to pay suppliers. Whole life insurance can be divided into two categories: whole life insurance with whole life insurance premiums whole life insurance, with limited period The difference in these two categories is how premiums paid.in first type of insured, pays the premium until the end of his life and in the second premium pay until a certain whenever the insured is alive at the end of the period is payable. 6. Temporary life insurance: a type of contract that insurer in the insurance premium guarantees that in case of death of the insuredduring the limited period specified in the insurance policy.the amount given to the person or persons insured to determine are usually named Users or beneficiaries. If the insured does not die during the study period,the insurer will pay the insured amount thanks to the durability and life of the insured and insured their survival the insurer shall not claim any compensation from and those who have paid premiums it is used to help the heirs of the insured who died during the insurance approximately 21% of the life insurance contracts in this category. This type of insurance divided into three categories the "fixed capital", "Money down" and "rising capital" For those who are temporarily exposed to the risks specific useful. Like those who travel frequently, or mission are being Or people whose job is risky. In general, this type of insurance are available in case of death or you still have not provided enough money to provide for their families need to meet their family. In this type of insurance, the insurance is terminated. Whatever term insurance every time premium payment is discontinued, this policy has the ability to transform and renew. Pension insurance is a type of term insurance with an investment decline. 2) Life insurance in the condition of Life The second category of life insurance policies is Insurance policies "life condition ".In these contracts, the insurer is obligated prescribed in insurance premium amount specified in the agreement reached, The insured must survive Approximately 8% of the total subjects included in the insurance policies are life insurance policies.this type of insurance is both "continuous" and "capital".in terms of pension, insurance funds to pay promised pensions is rather and the type of capital investment insurer pays insured under a contract of the typepremium payment is received or not. 3) Mixed life insurance (savings) The last type of insurance, is mixed insurance. This policy is effective as a means to provide funds on time so that sudden death not has any effect on capital formation.the contract expired at riskthe survival probability of the insured a simultaneous fit the insurer is required to provide. Another definition could be said in this insurance "Establish operating income for continuing personal or impart him of benefits. " In this type of insurance is included below: Savings Double Life COPY RIGHT 2013 Institute of Interdisciplinary Business Research 981

4 Double Family Death About 55% in the field of life insurance is contracts issued in this type of insurance. (9) 7. The role of marketing in the insurance industry In the insurance industry, marketing is not merely economic this means to increase corporate profitability and representatives, it is an opportunity for people to make informed, to provide Safe and Strong means from insurance for their future needs. Marketing is a social process in the insurance industry, management net sales and marketing services by a health insurance exchange policyholders to meet the demands of each other.because of the social nature of this process And direct communication with customers, sales and marketing network in a competitive market, any defect or dissatisfaction with the proposed insured will be transferred to the company and cause change in attitude, direction or size In order to promote and enhance the quality and quantity of product or provide service. (10) 8. Life Insurance Marketing Strategy Right act is a model of life insurance marketing strategy is to include the following: establish a lasting relationship and turn it into loyal relationship between insurance companies and customers Innovative and creative marketing: one cannot expect remarkable success of the common Beard guerrilla marketing attack: agencies usually have a lot of flexibility and financial resources Marketing based on consumer behavioral factors Customized Marketing: based on each customer's demands and needs of marketing offensive should be ambitious to move forward and not as a static (6) 9. Internet Marketing life insurance According to a research study the Effect of Internet on the Life Insurance marketing where the research was done all insurance companies operating in Iran.It increases the performance of internet marketing is life insurance.advantages of the Internet are as follows: Facilitate Marketing Communications Focus on human resources and advertising Improved face of trade Cost reduction Role of insurance in economic recovery and stability. Insurance of Investment Guarantee the role of insurance in protecting national wealth the role of insurance in the collection of small savings and investments creates the calm critical role in the life insurance business of people role in raising employment insurance the role of insurance in creating account (2) 10. Limits of life insurance industry in Iran The main problems of life insurance and non-proliferation in Iran are: 1) inefficient network COPY RIGHT 2013 Institute of Interdisciplinary Business Research 982

5 2) lack of access to accurate information and statistics 3) Lack of basic infrastructure 4) lack of standard insurance (3) Barriers to the development of life insurance in Iran 1) Management Structure there is no organization dedicated to providing specialized insurance Organize technical and support units in developed insurance companies do not help much 2) lack of optimal life insurance 3) inefficient sales network Organize technical and support units The insurance companies Do not contribute to the development of life insurance 2) lack of optimal life insurance 3) inefficient sales network The main problem can be as follows: failure and stunted growth of the sales person Low levels of education representatives There is ambiguity in the legal status of insurance vendors misunderstanding of the market manager Improper method of absorbing and retaining reseller 4) low economic power in the country 5) absence of major policy in insurance 6) lack of satisfactory service and good service 7) lack of proper propaganda on Iran (5) 11. Challenges and Solutions for Insurance in Iran 1) Promote the right people with convictionsthrough the mass media Insurance to be introduced. 2) Professional sellers by insurance companies are selection and training and the sales professional to operate the program. 3) create a comprehensive database for the insurance industry in transition and change we need 4) establishment of specialized insurance company or companies Life insurance is necessary, in particular, the share of life insurance in the commercial insurance are available and do not reach to 10 percent, While some developed countries to 60 percent it has a market share of life insurance Mathematical reserves for huge investment in other economic sectors provides It works well and is effective for the state's economic goals. 5) Some of the other recommendations in this section are considered as the diffusion coefficient increases the insurance industry 6) One of the current challenges in the industry was Governmental structure in insurance industry That private sector is already 35 to 37 percent of the market and the entry of private insurance and Exchange completed its Asian insurance market capacity will reach 47 percent 7) Information Technology And lack of optimal systems for providing information to regulatory agencies COPY RIGHT 2013 Institute of Interdisciplinary Business Research 983

6 8) different sections of society to understand the cultural context of the types of coverage needed by society (4) 12. Conclusion Despite the impact of the economy on life insurance and its immense benefits to different reasons such as lack of adequate infrastructure, poor vision, given the importance of and value in life insurance, due to the high background, in Iran, there has been little progress.according to the industry, proper management and proper planning can be considered as a factor affecting the welfare, economy and...use in Iran. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 984

7 References 1. Esmaili goddess. (2011). Master's thesis entitled The Effect of the Internet on the marketing of life insurance. School of Management, Tehran University 2.Hassani, Ali Reza. (2011) Insurance and its role in economic recovery 3. M. Farmer, A.. (2011). The main problems in the development of life insurance 4. ZABIH, Darius. (2011) examine the opportunities and challenges facing the insurance industry in Mission Newspaper, No. 7447, pp Ranjbar, Abbas. (2007). Barriers and strategies in the development of life insurance 6.Roosta, Ahmed. (2010) detail 7 revolutionized marketing strategies for the insurance industry Seyedinzade, Salman. (2012). The relationship between marketing strategies and sales of life insurance and savings 8. Seyedinzade, Salman. (2012). The relationship between brand value and performance in selling life insurance and savings insurance refracted 9. Brave, Nadia (MS damage accidents). (2010). Life insurance policies and types (of growth) 10. AmeliAnzhiyla. (2003), the role of advertising in the correct identification information for policyholders insured civil liability (particularly in the voluntary sector), Economic Research Journal, No. 9, pp Abdollahi, F..(2011). Life Insurance in the historical narrative.bina News 12. Source approved by the Insurance Act Mahdavi, Ghadir. (2011). Life tables were used to calculate all kinds of life insurance and financial mathematics at the 14. Naderi, Ali. (2011). Tarykhjh Life Insurance 15.Nabi Mohammad. (2009). Insurance Law COPY RIGHT 2013 Institute of Interdisciplinary Business Research 985