Risknews reviewed private insurance companies’ financial statements for the year, according to which 934 billion rials ($3 million) went into expanding IT infrastructure. The year before the amount 440 billion rials.
Parsian Insurance Company, affiliated to Parsian Bank, topped the list with 130 billion rials. Saman Insurance owned by Saman Bank was next with 116 billion rials, followed by Asia Insurance.
Novin Insurance Company, affiliated to EN Bank, was at the bottom end along with Ta’avon Insurance and Moallem Insurance.
Alborz Insurance Company, a privatized firm and one of the big four in the local market, registered the highest growth in tech investments, seven times more than the year before, followed by Ma Insurance, which increased tech investment five-fold.
Part of the growth in tech investments is attributed to the regulator's decision to compel insurance companies to digitalize.
Last year, the Central Insurance company of Iran instructed insurance firms to transfer the process of sale, renewal, and claims of personal auto policies to an online platform. Insurers mist also provide agents and representatives access to online platforms to support their business.
The insurance industry regulator has long called for expanding innovation as a need for increasing the penetration rate of insurers and enhancing quality.
Its move to increase the number of insurance companies is in line with policy to boost innovation in the rapidly growing sector.
Presently 33 insurance companies operate in Iran including offshore firms and reinsurance companies. Amin Re and Iranian Re are the two main specialized reinsurance companies.
Recently three reinsurance companies, two life insurance companies and two general insurance firms got permits from the CII. The new firms will focus on innovative technology.
Another recent study showed that insurance companies are now interested in developing and offering innovative services.
Bimeh-Dari Novin Magazine, a journal that covers the insurance industry, conducted research on the performance of insurance companies vis-à-vis innovative services. It said innovative proposals approved by the CII reached 14 in the fiscal year to March 2019.
A review of CII approvals in 15 years shows that the average number of innovative insurance services offered barely exceeded five each year. The CII okayed 15 innovative plans during the period under the review.
The study also showed that transforming the auto accident insurance category was the main focus of insurance companies between 2007 and 2011. It centered on vehicle insurance categories in the next two years. However, innovative solutions related to medical insurance outnumbered other segments after 2013.
Reports indicate a growing tendency in innovative life insurance solutions. For the first time in the industry's history, three proposals related to this category managed to get CII approval in the year to March 2019.