Private insurance companies contributed around 62.2% of premium income in Iran for the year ended March 20, a 3% year-on-year growth. This was revealed by the Central Insurance of Iran (CII), the country’s industry regulator.
CII data showed that the remaining share was under the Iran Insurance Company (IIC), the sole government-owned player in the market.
Private insurance firms paid 57.3% of the total claims, with the rest covered by the IIC, reported the
Financial Tribune.
Meanwhile, the loss ratio of private insurers was at 59.5% during the period, 14.7% lower than that of state-owned IIC.
This is a reversal from previous years, where the IIC dominated the market, giving rise to concerns about a monopoly and unfair competition among other market participants. The government, through the CII, has announced that it plans to alter the IIC’s role in the market, allowing more competition among private insurers and enlivening the insurance industry.
The Iranian insurance sector posted IRR277.2 trillion (US$7.4 billion) in premium income for the past Iranian year, which ended on March 20. This is a 22.5% increase from the previous year.
Personal motor insurance policies were the top revenue source for insurers, accounting for 39.5% of income, with growth of 28.8%. Medical and life insurance came next, accounting for 23.5% and 13.4% of the total premiums, respectively.
Related stories:
Iranian government sets capital requirement for insurers
Iranian government to divest from reinsurer
Several international re/insurers eyeing Iran
