Insurance companies in Iran generated 528 trillion rials ($3.3 billion) from selling 64.2 million policies during the eleven months to February 21, registering a 38.7% increase in premium and 10% growth in the total number of policies sold.
Data released by the Central Insurance of Iran shows that third-party auto policies again accounted for the largest portion of the premium, with nearly one-third of the income.
Premium generated by selling third-party auto policies reached 179 trillion rials ($1.118 billion), up 41% compared to the same period last year.
Medical insurance premium increased by 30% to reach 125 trillion rials ($781 million) during the period. This category accounted for 23% of the premium.
Insurers reported 95% growth in the total number of medical insurance policies, as the total number of policies reached 3.8 million during the period.
The contribution of life insurance in insurers' portfolio reached an all-time high of 14.6%, amid renewed efforts to promote life insurance among the general public. The category generated 77 trillion rials ($481 million) during the elven-month period, up 40% year-on-year.
Total payout by the sector amounted to 295 trillion rials ($1.8 billion) during the said period, registering a 26% increase compared to last year same time.
The payout ratio of the industry was reported at 55.8%, indicating a 5.52% drop year-on-year.
Third party auto policies also accounted for the largest part of payouts at 40%. Nearly 118 trillion rials ($737.5 million) was paid to policyholders during the eleven months to compensate losses in the category.
Medical insurance category also had a significant share in the total payouts – 31% with 92 trillion rials ($575 million). The money was paid to more than 20 million claimants.
Penetration rate of the insurance industry has been rising steadily in recent years. From 1.1% in 2011, the penetration rate reached 2.38% at the end of the last fiscal year in March 2019,
Insurance industry experts say there should be a close relationship between insurance indicators and economic and social indicators because the level of insurance coverage is normally seen as an indicator of welfare and cultural development.
Therefore, economic constraints, people’s disposition toward the insurance sector, level of government support and public participation in insurance-related activities determine, to a large extent, growth of the key industry, or the lack of it.
