Medical insurance emerged as the main source of revenue for insurers in the first seven months of the current fiscal year (started late March 2022), out earning the lucrative third-party auto segment for the first time ever.
As per Central Insurance company of Iran data, insurance companies generated 310.3 trillion rials ($885.3 million) from medical insurance policies during the said period, registering a growth of 182.2% compared to the same period last year.
Medical insurance accounted for 32.06% of the collective portfolio during the seven months over and above third-party auto insurance with 29.12% share.
Growth in the normally laggard medical insurance category is said to be mostly because of two contracts signed by two private insurance companies earlier this year.
Dana Insurance Company signed a one-year contract with the Ministry of Education in June. Day Insurance Company signed an agreement with the Foundation of Martyrs and Veterans Affairs in May.
The two contracts collectively generated 114 trillion rials ($325.2 million) in premium for insurers, Risknews reported.
During the said period companies sold 896,000 medical insurance policies, 61.16% higher on the corresponding period last year. However, 176.6 trillion rials ($503.8 million) was paid in claims in the medical insurance segment that was 68% higher on the previous year.
Total medical insurance claims grew by 40% to 39.1 million. A large part of the money was paid to cover bills related to the Covid-19 pandemic.
Soon after the disease struck, insurance companies were told to cover all the expenses of policyholders infected with the brutal virus and expand the scope of cover to include PRC tests.
Despite the devastating impact of the deadly disease, insurers saw the pandemic as a rare development that allowed them to improve their tarnished credentials with customers who rightly complain about their strange practices, mainly in private hospitals, in demanding full payment of bills and refusing to deal with the bureaucracy of insurance companies and other hassles.
More than 25 million Iranians have medical insurance.
Insurers generated 968.1 trillion rials ($2.76b) in premium during the seven months posting a growth of 62.24% compared to the same period of last year.
Third party auto insurance was the second major source of income generating 281.9 trillion ($804.2 million). CII data showed 33.9% growth in premium year-on-year.
Life insurance was the third top source of revenue, generating 127.1 trillion rials ($362.6 million) or 13.13% of the total in the ten months.
Auto body insurance with 5.69%, fire insurance 4.55% and liability insurance 4.34% were the other main earners.
More than 39.3 million insurance policies were sold during the period under review, 3.52% higher on the previous year. Total payout was 443 trillion rials ($1.26 billion) – 53.4% higher y/y.
Third-party vehicle insurance was the next big payout segment at 30.72% up 54.9% y/y.
The payout ratio in the ten months was 45.84%, down 2.63 percentage points on the same time last year.
The CII report said Iran Insurance Company, the only state-owned company, accounts for the largest portfolio with nearly 25% share of the key industry.
