1. Introduction
Planning the future activities is crucial, and the continuation of the ongoing activity of an organization will not be possible without it. The budgeting system, as a management system, is an effective means for planning, optimal resource management, cost control, and activities of a company. Thus, considering the high-level documents and the sixth medium-term plan of the company and observing the criteria and requirements of The Mostazafan Foundation of Islamic Revolution and Sina Financial & Investment Holding Co., Sina Insurance Company's budget for 2020 has been formulated to accomplish three-year medium-term goals.
2. Strategic Document of Sina Insurance:
The sixth medium-term plan of Sina Insurance Company has been considered as a strategic document and roadmap in compiling the budget for 2020.
2.1. Prospect
* Acquiring a market share of 3% while maintaining a net profit margin of 10% by the end of 2022
* Strong presence in regional and global markets with the acquisition of the standards required for competitiveness
2.2. Mission
* Creating peace of mind and financial security for all clients and shareholders
2.3. Strategies (Policies and Objectives):
Short-Term Policies:
* Increasing the portfolio by modifying the composition and the formation of economic portfolio along with the profit margin
* Benefiting from the insurance capacities of The Mostazafan Foundation of Islamic Revolution
* Access to Loss ratio up to 60%
* Refining existing representatives
* Observing the credit sales standards
* Optimal management of resources and reserves with expected maximum profit
* Increasing reinsurance accepted taking into account the financial solvency index
* Efficient use of sales network capacity through outsourcing part of activities and increasing scope of authority
* Maximum use of information technology in the development of the market
* Boosting the position and power of the investment sector from the company's reserves
* Strengthening the position and power of the legal department
* Developing the sales network in all parts of the country
* Maintaining human capital and recruiting skilled manpower and implementing a meritocracy plan
* Redesigning organizational structure and organizing human resources
* Revising internal guidelines and regulations and adapting them to market conditions and high-level documents
* Upgrading the level of technical and financial supervision with new means
* Preparing the provision of financial reporting based on the IFRS model
Short-Term Goals:
* Achieving optimal organizational structure
* Optimal composition and distribution of manpower
* Developing capacities and strengthening the scientific foundations of human capital in various fields
* Designing and launching new insurance products, particularly in the field of life insurance
* Achieving a comprehensive system of knowledge management, innovation, and creativity
* Market development and improving the quality of service delivery through IT development
* Developing the sale of micro-insurance
* Developing the sale of profitable insurance, especially life insurance
* Increasing the efficiency of sales network
* Deploying an integrated risk management system at all levels of organizational decision-making
* Establishing the budgeting and planning system
* Strengthening the liquidity indicators
* Holding an extraordinary general assembly meeting to raise capital
* Increasing the company's financial solvency in order to maintain the level of company's reputation
* Evaluation and agility of the organization through eliminating parallel and redundant processes
* Promoting the level of international cooperation with prestigious companies around the world
* Preparing and deploying the comprehensive software of treatment services