Top Insurer Wants Bigger Market Footprint

EghtesadOnline: Iran Insurance Company, the largest and sole state-owned insurance company, is struggling to increase its share of the market from 30% to 50%.

News ID: ۷۴۸۸۱۰

26 October 2019

Mohammad Rezaei, a board member and acting director of the company, said restricting IIC operations in the market is uncalled for and is in irrational decision.

"Our studies show that increase in IIC's share could bring more benefit for the market," he said without elabortion.

IIC's domination of the local market has been among the key concerns of private insurers. IIC controlled over half the market in recent years, giving rise to fears of monopoly and unfair competition among industry stakeholders, according to Financial Tribune.

The Central Insurance of Iran has been trying to curb shares of the only state-owned player in the market.

Based on a report by the Central Insurance company on insurers’ performance in 2016, approximately 58.6 million insurance policies were sold and 32.5 million claims were made. Share of the private sector from premiums and claims paid was 62.6% and 57.3%, respectively.

No data is available for the current performance of IIC, as the CII has stopped publishing monthly statistical reports.

According to Rezaei, IIC paid an average 230 billion rials in claims and earned 480 billion rials in insurance premiums daily during the period, compared to 193 billion rials and 310 billion rials in the first five months of the previous year.

The IIC will start selling insurance policies online from mid-November, he said.

The company is also planning a major center in Tehran suburbs to handle claims and payout affairs.

Back in September the company announced plans to increase its capital from 34 trillion rials ($300 million) to 100 trillion rials ($870 million) before the current calendar year is out in March 2020.