Insurers paid out 24.2% more year-on-year during the nine-month period, according to a report by IRNA.
As per data released by the Central Insurance company of Iran, insurers’ premium reached 430 trillion rials ($3.3 billion) during the period -- 41% higher than the same period last year, Financial Tribune reported.
Third-party auto insurance accounted for one-third of the generated premiums. Medical insurance and life insurance came next with 25% and 14%, respectively.
Industry's payout ratio declined by 7.2% to 51.8%, CII data showed.
The CII, as regulator of the sector, expects insurer's earnings to reach a record 600 trillion rials by the end of the current fiscal year (March).
In the last Iranian year (March 2018-19) insurers generated 454.4 trillion rials ($10.8 billion) in premiums -- up 33.5% compared to a year ago.
The industry's total payouts amounted to 288.6 trillion rials last year, 32% higher than the 218.2 trillion rials paid the year before. The total number of claims, however, fell by 3.1%, to reach 57.4 million.
Hard to Pay
Rapid and persistent increase in car prices in the past few months has resulted in increase in rates of third-party auto policies, making it harder for low-income groups to pay for the compulsory policy.
To support policyholders, the insurance regulator offered an incentive that waives penalties for motor vehicles without insurance. It also includes waiving the previous fines for car owners lacking insurance.
Third party vehicle insurance is mandatory in Iran. It is essentially a form of liability insurance according to which, in the case of road accident, the insurer is required to compensate the inflicted party for physical or financial loss according to the reimbursement ceiling set by the High Council of Insurance, affiliated to the Central Insurance company.
HCI raised the premium rates and reimbursement ceiling for third-party auto insurance by 15% in the current fiscal year (started March 21) compared to the year ago.
The new annual premium rates can range from 3 million rials ($24) to 84 million rials ($619) depending on the type of vehicle (cars, buses and motorcycles).