Iranian insurance companies generated 434.5 trillion rials ($3.8 billion based forex rates in the Tehran’s open market) in premiums during the last fiscal year (ended March 2019), according to the Gholamreza Soleimani.
The industry made 265 trillion rials in premium during the first six months of the current calendar year, IRNA quoted him as saying.
Third-party vehicle insurance and medical insurance, respectively accounted for 33.6% and 24% of the premiums, followed by life insurance (14.4%) and car body insurance (6.5), according to Financial Tribune.
Pointing to progress in the insurance industry in recent years, Soleimani said Iran’s insurance industry is keeping pace with developed countries.
Drawing parallels between the domestic insurance industry and those in pioneering countries, Soleimani referred to the conformity of rules and procedures in Iran with international standards.
Elaborating he pointed to the creation of Bodily Injury Indemnity Fund in 1969 aimed to protect car accident injuries, saying similar funds in France, England and Canada were created later.
“In terms of regulatory and supervisory aspects, the CII has moved ahead in tandem with global norms,” he said.
Creating Space for Startups
To allow more space for the operation of startups and insurtechs, and to facilitate the sale of insurance policies, the insurance regulator has announced relevant regulations.
The CII chief earlier announced plans to allow startups to handle 10% of Iran’s insurance market in the current fiscal year.
Hundreds of startups and knowledge-based companies have opened in Iran in recent years with some offering insurance services, namely Bime Click, Bime Bazar, Bimito, and Fast Bime.
A review on the performance of insurance firms in the last fiscal year shows 4.5% growth in the number of policies sold. Companies were able to sell 61.3 million policies last year, compared to 58.6 million in the previous year.
Iran Insurance Company, the sole state-owned insurer, accounted for 34.5% of the total premium with 156 trillion rials. It sold close to 27.4 million policies.
Privatized firms accounted for the largest portion of the remaining shares. Asia Insurance was the leading private insurer in terms of premiums accounting for 9.8% of the market. Dana and Alborz insurance firms were next with 6.9% and 6.5%, respectively.
The industry's total payout for claims amounted to 288.6 trillion rials, 32% higher than the 218.2 trillion rials paid the year before. The total number of claims, however, decreased by 3.1%, at 57.4 million.
IIC accounted for more than 60% of total payouts. Backed by the government, IIC offers easier terms for paying claims to policyholders.