Central Insurance company of Iran data show that insurers generated 2.78 trillion rials ($21 million) from plane insurance policies during the fiscal year that ended in March 2019 -- up 44% compared to the year before, according to Financial Tribune.
Payouts by the insurance firms in this category totaled 665 billion rials ($5.1 million). The 40% growth in their paid losses is hardly a surprise given the age of the national air fleet, and the fact that new planes cannot be bought due to the US restrictions.
The amount of premium in the aviation category was less than 1% of the insurers' total premium generated last year.
The industry's total loss ratio (covering all insurance categories) stood at 88.8%, according to the CII report.
Iran Insurance Company, the only state-owned firm in the market, accounts for more than half the total premium of the aviation insurance category. The giant insurer generated 1.36 trillion rials ($10.6 million) in premiums from aviation coverage in the last fiscal year, up by nearly 20% year-on-year.
The CII also accounted for 71% of the category's paid losses. CII data shows an increase of 250% in Iran Insurance Company's paid claims in the category, probably because of more air incidents in the last Iranian year.
Private insurers, however, reported 44% decline in aviation insurance claims last year. They generated 83% more premium during the period.
At present, 28 Iranian airlines own an aggregate of 259 aircraft with an average age of 24.96 years.
Iranian airlines had ordered 313+50 airplanes following the lifting of the nuclear sanctions in 2016. However, only one Airbus A321, two Airbus A330s and 13 ATR 72-600 turboprops, five of which were delivered hours before the reimposition of the first batch of US sanctions in August 2018 have been delivered.