Iran Insurance Authority Announces Rules for Selling Online

EghtesadOnline: As per new rule passed by the High Council of Insurance, selling insurance policy online requires official permission from the Central Insurance company of Iran.

News ID: ۷۸۴۹۴۳

13 October 2019

The council announced a framework for regulating the activities of online insurance agents according to which "Official Online Broker License" allows insurance policy sellers to function on behalf of insurance companies, offer price comparison services and make online billngs, Risknews reported.

Moreover, "at least one board member of the companies applying for the license must, at the least,  have three years of relevant experience."

In July, the head of CII, Gholamreza Soleimani, spoke about plans to allow startups to handle 10% of the domestic insurance market, Financial Tribune reported.

According to the senior insurance official, the domestic insurance market was worth 450 trillion rials ($3.9 billion) in the last fiscal year (March 2018-19) and insurers prefer insurance startups handle 10% of the growing market.

The Iranian Insurers Syndicate had earlier expressed concern over the negative impact of authorizing online sales, especially regarding the effects it would have on traditional sales network of insurance firms.

An estimated 32,245 insurance agents are active in the country. Vehicle and medical insurance account for the biggest share of their portfolios.

Insurance companies apparently are slow in developing modern services. Developing user-friendly platforms for buyers is to the startups’ advantage and helps them attract clients.

Some experts say developing insurance startups would help shift brokers’ focus from auto and medical sections to other important categories, namely life insurance.