CEO Ezaki: The investment of insurance sales startups has been zero in the last two years

CEO Ezaki: The investment of insurance sales startups has been zero in the last two years


Hamed Valipuri, the CEO of Ezaki Company, said in the first conference of Iran’s opportunities in the digital era, about the position of insurance startups in the country, the focus of insurance companies in Iran is selling insurance, but in this field, sales startups have not grown as much as expected.

According to him, challenges in insurance industry taxation, investment and regulation prevent the growth of insurance startups in the sales sector: “If we look at the value chain of the insurance industry, we have three main rings of risk, sales and loss. Insurance startups in the world have defined their value under this chain. The success of insurance startups correlates with the size of the market to which they provide their value proposition. The startups we reviewed were offering their value to a trillion dollar market. In the last two years, about 28 billion dollars have been invested in startups that were in the market.

In the past years, this investment was mostly made in startups that focused on sales: “When we went further, we saw that startups that operate in the risk and damage field attract more capital. On average, in 2020, 22%, in 2021, 28%, and in 2022, 32% of the investments that happened in the insurance industry were made on startups operating in the field of artificial intelligence.

Valipuri emphasizes that, just as after the industrial revolution, the concentration of wealth moved from eastern countries that depended on human power to the west, after the emergence of artificial intelligence, we will witness that the value of thinking and decision-making, like the force of the arm, may be to disappear and the general trend of wealth in the world is completely shifted: “In the insurance industry, we also see that the investment trend has gone towards startups that invested in this field.”

According to him, the attractiveness of the risk field for insurance companies is that they can have better pricing and take a better share of the market: “In this sector, we see that 60% of the Iranian market is car and third-party insurance, where the government does pricing and for companies Investment insurance in this area is not attractive, so investment in the risk area is almost disappearing, and if the insurance company is not behind it, a startup will not be formed.”

In terms of claims, global trends show that if insurance companies make long-term investments, they can reduce their losses by 10-12%: “But the dynamics of the insurance industry in Iran is that managers are managers for a period of 2-3 years and When their investment wants to pay off, they probably won’t be managers anymore.”

As a result, the focus of insurance companies in Iran is the field of insurance sales because it creates liquidity: “Access to financial resources is very attractive for inflationary countries like us. This is where we see that insurance startups have emerged in Iran in the field of sales, but the same sales startups have not grown as much as we want.”

Valipuri cites three reasons why insurance startups are not growing, which include insurance industry taxes, investment, and regulation. According to him, the investment of insurance startups was zero in the last two years. Also, rather than being a regulator, the regulator wants to act like a company’s board of directors and limit the framework of companies: “The regulator has a serious opinion in the field of investment, pricing and sales strategy, and this issue puts pressure on the growth of the market.”

At the end, CEO Ezaki says that in Iran’s insurtech market in the field of sales, insurance sales startups have only 2 to 3 percent of the market, while the global trend of countries like Turkey, which are not so advanced, is 10 to 15 percent.


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