Investigating the amount of life insurance policy sales in the country's insurance industry

Dissertation for Master Degree (M.A)

Treatment: "Insurance Management"

Introduction

Life insurance is considered a financial tool. The task of providing financial support and coverage to a family that has lost its breadwinner (insured) due to death is entrusted to life insurance. Today, life insurance is one of the most important fields of activity in the insurance markets of different countries. It is of particular importance due to its special socio-economic properties.

The sources of family income are at risk of being lost or reduced from various angles, such as: early death, disability and additional expenses due to diseases, accidents and old age, retirement and unemployment, the occurrence of each of which has a financial aspect and threatens the financial means of families to varying degrees. economic values ??are at risk, so it is possible to deal with the consequences of financial profit by relying on the mechanism of insurance.

There is a reciprocal relationship between insurance and economic development, so that life insurance plays a role in the economic development. Such development leads to an increase in personal savings and the need for fixed incomes, and the presence of these two factors in the economy of a country provides the basis for the demand for life insurance.

Encouraging personal savings through life insurance can help the government It helps in dealing with inflation, because an increase in deposits usually means a decrease in purchasing power, and this in turn reduces the total demand and neutralizes some of the inflationary pressures.

1-1 Statement of the research problem:

While people's awareness of third party insurance increases every day in terms of its mandatory nature, the benefits of life insurance still have no place in Iranian families' portfolios.

Life insurance is one of the important fields of personal insurance. It is considered and includes different types, but this is associated with ambiguities in the opinion of the public, because the majority of people at some point consider this insurance policy to be different from life insurance and they see a big difference between these two insurance policies, while with a brief review, it can be understood that life insurance policy is one of the types of life insurance, and its other name is life insurance with the condition of life. People are not affected by the purchase of this type of insurance either.

Omar Iran, news code (196571)

The main question of the research: What is the prioritization and importance of the factors to increase the level of awareness of insurance policyholders about the provisions of life insurance in the country's insurance industry? On the amount of life insurance policy sales

1-3 Importance of the issue:

Despite society's need for this type of suitable insurance coverage, unfortunately, for many reasons, this insurance has not grown significantly compared to other countries, and its share in the insurance industry portfolio of our country is only 6.6%, and compared to other countries, it can be said that there is a kind of backwardness in its sales and presentation.

Obstacles such as lack of awareness, management organizational structure , lack of proper dissemination of insurance culture, inefficient sales network, lack of macro-policy, low economic power of the people, lack of satisfaction of the insured, etc. And it seems that the biggest problem in the direction of the backwardness of life insurance is an important issue called lack of awareness or the lack of proper dissemination of it to the policyholders, and the lack of an empty space in the insurance culture is well felt, and this shortcoming may be on the part of the government, insurance institutions, and other cultural institutions such as cinema, radio and television.

There was no serious determination. In insurance companies, in the direction of diversification in life insurance, due to the amount of income and lack of attractiveness in selling life insurance, and only being prominent related to life, i.e. on the condition of death, it creates a background for it to fade away and lacks psychological benefits for policyholders.

Lack of advertising and information on the advantages and benefits of life insurance, the existence of a culture of indifference and carelessness of parents towards the future of their children, who come only to temporarily satisfy physiological needs, beliefs of dependence on organizations and Institutions supported by some people, which are somehow in conflict with the development of society, can cause the lack of growth in the correct development of insurance.

Lack of advertising and informing about the advantages and benefits of life insurance, the existence of a culture of indifference and carelessness of parents towards the future of their children, who come only to temporarily satisfy their physiological needs, the beliefs of dependence on organizations and support institutions by some people, which somehow contradicts the evolution of society, can cause the lack of growth in the correct development of life insurance.

In order to create awareness, things must be considered, such as: knowing the insurers, creating value for the policyholder, handling the complaints of the policyholders, making the policyholders loyal, and in fact, people's lack of awareness of the complaints originates in the perception, that is, the difference between what is actually delivered and what the customers understand, and there is a difference between what the service provider promises and what the customers imagine and was promised.

If, for example, to increase the attractiveness The elasticity of life insurance was offered in combination with health, accident, body and third party insurances. Perhaps the customers had more motivation to use it, and also factors such as the population dispersion and the level of illiteracy and the quantity and quality of medical service centers do not allow life insurance to grow. are considered and indicate the expected results (Alizadeh and Moghadamnia, 2019). The assumptions of the above topic include the following:

Inflation index has a negative and significant effect on the amount of life insurance policy sales.

Management index and the structure of the insurance industry have a positive and significant effect on the amount of life insurance policy sales.

Insurers' motivational index has a positive and significant effect on the amount of life insurance policy sales.

Cultural, social and educational index has a positive and significant effect on the amount of insurance policy sales.

1-5 research model:

Based on the variables in the theoretical framework and examining the relationships between them and the effect of the existing factors on the amount of life insurance sales, multiple regression is used and it becomes this equation:

Inflation factor: X1

Cultural, social and educational factors: X2

Management factors and the structure of the insurance industry: X3

Motivational factors of insurers: X4

Life insurance provisions:

Y = a +b1x1 +b2X2 +b3X3 +b4X4

Amount of life insurance policies sold

Inflation factor

Cultural, social and educational factors

Insurance industry management structure factors

Motivational factors

Chuma, H,1994)

Definitions and terms and research variables:

1. Insurance: Article 1 of the Insurance Law approved in 1316 defines insurance as follows: "Insurance is a contract by which one party undertakes to compensate the damage caused to him or pay a certain amount in exchange for payment of money or funds from the other party in the event of an accident. The obligee is the insurer, the party to the obligation is the insurer, the amount paid by the insurer is called the insurance premium, and what is insured is called the subject of insurance."

Also, according to the provisions of Article 5 of the aforementioned law, the subject of insurance cannot be property (whether object or benefit), any financial right, any type of legal responsibility, and for an accident or risk that the insured will suffer from. In other words, the insured must be a beneficiary of the survival of what he insures.

Therefore, insurance is a contract in which the insured compensates the losses caused by the possible and imminent risk through the payment of insurance premiums to the insurer.

2. Insurer: is a legal person who obtains an activity license from the Ministry of Finance according to the provisions of the establishment law.

3. Sales representative and insurance surveyor: are domestic and foreign natural persons who, according to the provisions of this law, obtain a license to operate in the relevant field from the Ministry of Finance.

4. Insured: It is a natural person or a legal entity that contracts insurance in order to obtain one of the types of insurance for its own benefit or for the benefit of another principal or agent.

5. Insurance premium: It is the money that the insured pays to the insurer in exchange for the insurance contract.

6. Compensation: It is cash or change that is paid to the insured in the event of an accident or risk and fixing the loss.

7. Subject of insurance: human and animal life that is exposed to death or disability or objects, goods and property of the customer that is exposed to damage and loss.

8.