The Company is state-owned and was decreed in 1935. It has grown over the years and currently has 273 branches and 1957 agencies spread across the country. After the recent developments in the information and technology fields, the Company might be overstaffed (around 3,600 current employees). The management is keen on outlining its potential weaknesses and enhancing efficiency. In this regard, it set twenty goals to improve the organization of the Company. Executives with significant expertise run the Company’s operations. Management reports are submitted monthly for supervision and control. As for the structure of the management, there is enough delegation to the directors of the board and their subordinates. The Company provides training to its employees in the various provinces. Employees are required to pass technical exams to be promoted. The award system is documented and circulated. A code of conduct was established to optimize the relationship between the employees and the customers.
Apart from increasing its large market share in Iran, the Company formed subsidiaries in the UK and the Persian Gulf region in an attempt to expand its small overseas operations. The Company should make a precise contingency plan to counter any unforeseen adversities. In 2003, there will be privatization in the insurance industry in Iran. This might have some unfavorable effects on the state- owned insurance companies that could lose market share and employees. A precise contingency plan will help the Company deal with these possible adverse effects. The Company’s current computer system is not integrated. Underwriting authority is controlled manually in the local branches in coordination with the headquarters in Tehran. So far, the Company has not faced any problem in this regard thanks to disciplinary management. Still, an integrated system could limit possible manual errors. Such a system will also reduce labor and administrative costs. The Company underwriting strategy includes the enhancement of its life-term products. The Company also offers an investment product that guarantees a minimum return of 16% regardless of the investment returns the Company generates.
There are no problems of recoveries or any apparent claims handling with the reinsurance companies. The Company recognizes the need to increase its protection against potential accumulation of natural hazards risks. Although the Company lead reinsurance companies have been changing over the past five years, Bimeh Iran holds a positive stand in its reinsurance activities.
The 68-year old company has grown very much over the years. In 2000, the Company enjoyed almost 57% of the Iranian insurance market’s gross direct premiums. In 2001, the Company’s total premiums increased by 48.95%. This growth is expected to continue in the near future even after the introduction of new private companies to the insurance market. This is due to the country’s volume of population, which provides a great potential for further growth and development in all the branches of insurance.