The Central Insurance of Iran is the financial regulatory agency in charge of regulating the Iranian insurance industry. Central Insurance was established to regulate, standardise and guide the local insurance industry.
| Persian: بیمه مرکزی جمهوری اسلامی ایران | |
| Agency overview | |
|---|---|
| Formed | 1971 |
| Jurisdiction | Iran |
| Headquarters | Tehran, Iran |
| Agency executive |
|
| Parent agency | Ministry of Economic Affairs and Finance (Iran) |
| Website | centinsur |
As of 2018[update], the agency regulated more than 25 insurance companies in Iran that work as a private companies and there is one state owned company known as "Bimeh Iran insurance Co.".
History
editIn 2006 the market share for private insurance companies stood at 54% and 46% for governmental insurance companies.[1] At the end of 2008, there were 20 insurance firms active in the market, only 4 of which were state-owned (with a 75% market share). As of 2014, twenty-five insurance companies are active in Iran and all, except one, are privately owned.[2]
By 2008, the total insurance premiums generated in Iran were $4.3 billion. This is less than 0.1% of the world's total, while Iran has approximately 1% of the world's population. The insurance penetration rate is approximately 1.4%, significantly below the global average of 7.5%. This underdevelopment is also evident in product diversity.
Insurance market by 2012
editApproximately 60% of all insurance premiums are generated from car insurance. There are about 14 million vehicles in Iran and 90 percent of them are insured (2012).[3] Of the 10 million motorcycles that operate on Iran's roads only 2 million are insured.[3] Also, 95% of all premiums come from general insurance contracts and only 5% relate to life products (against world average of 58% for life insurance in 2011).[1] One of the defining characteristics of the economy is entrenched high inflation (and expectations) thanks to persistent monetisation of fiscal deficits. This produces an environment in which no prudent person would enter into a long-term savings contract. According to Business Monitor International, unless and until economic policies in Iran change radically, the reality of the insurance sector will fall a long way short of its potential.[4]
Blood money 2011-2012
editBlood money was $67,500 in 2011, down from $90,000 a year before.[1][5]
Iranian tanker insurance under sanctions 2012
editSince 2012, Iran is insuring its own fleet of oil tankers because of international sanctions.[3]
Payout ratio
editPayout ratios have shown consistent growth over the years. Last year, the industry average payout ratio was 86%. Iran has 2 re-insurers. Insurance premiums come to just below 1% of GDP. This is partly attributable to low average income per head.[6] In 2001/02 third-party liability insurance accounted for 46% of premiums, followed by health insurance (13%), fire insurance (around 10%) and life insurance (9.9%).[6]
Insurance industry’s payout ratio stood at 63.8% during the fiscal year ended in March 2016. Insurers' generated premiums totaled $6.5 billion during the said period. Iran Insurance Company, the only state-owned firm, accounted for 39.47% of the premium. Asia Insurance and Alborz Insurance trail by a big margin behind IIC, holding 10.15% and 7.56% of the market’s share, respectively.[7]
Auto liability
editThird-part auto liability accounted for 37.6% of insurance firms’ total generated premiums during the year ended in March 2016, with insurers selling about 19.18 million auto policies in the period.[8] As of 2014 total (non-life) market premium was 1.27% of GDP with only $69 per capita spent on insurance.[9]
International
editAs of 2016, Norway's Skuld (shipping), UK's Steamship Mutual and Standard Club (shipping), Protection and Indemnity (P&I) clubs (shipping), France's Coface (export guarantee agency), Italy's SACE (export credit agency), Germany's Hermes (export credit agency), Austria's OeKB (export credit agency) and Switzerland's SERV (export credit agency) are back doing business in Iran. Many large reinsurance companies are also considering returning to Iran (including Lloyd's, Allianz, Zurich Insurance, Hannover Re and RSA).[10]
References
edit- ^ a b c "Private insurance companies in Iran-Iran Today-09-30-2011". YouTube. 2011-09-30. Retrieved 2012-02-08.
- ^ "دسترسی غیر مجاز". iran-daily.com. Retrieved 17 April 2018.
- ^ a b c ""/> <meta property="og:type" content="article". www.menafn.com. Archived from the original on 25 July 2018. Retrieved 15 January 2022.
- ^ "Iran Insurance Report Q3 2012 - Research and Markets". www.researchandmarkets.com. Archived from the original on 2016-03-20.
- ^ "Iran Investment Monthly Oct 2011.pdf" (PDF). Archived from the original (PDF) on 2012-03-20. Retrieved 2012-02-08.
- ^ a b "Financial Services Forecast", Economist Intelligence Unit, August 18, 2008
- ^ "Insurance firms report losses". Financial Tribune. 7 May 2016.
- ^ "What future for insurance industry". Financial Tribune. 5 June 2016.
- ^ "Foreign Insurers Wary of Iran Despite Vast Opportunities". financialtribune.com. 15 November 2016. Retrieved 17 April 2018.
- ^ Saul, Jonathan (21 October 2016). "Cautious Western insurers rebuild business ties with Iran". reuters.com. Retrieved 17 April 2018.