Insurers generated 1,097 trillion rials ($3.048 billion) in premium in the first eight months of the current fiscal year (started late March), posting 57.79% growth on the same period last year.
Medical insurance was again the main revenue source, outperforming the strong and lucrative third-party auto segment for the second month in a row.
As per Central Insurance company of Iran (CII) data, insurance companies made 326.7 trillion rials ($944.9 million) selling medical insurance policy during the period -- up 168.28% from the same period last year.
Medical insurance accounted for 30.99% of the collective portfolio during the eight months -- over and above third-party auto insurance with 29.77% share.
Growth in the normally laggard medical sector is said to be mostly because of 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 a deal with the Foundation of Martyrs and Veterans Affairs in May. The two deals collectively generated 114 trillion rials ($325.2 million) in premium, Risknews reported.
During the said period companies sold 1.039 million medical insurance policies, 54.80% higher on the corresponding period last year. However, 214.4 trillion rials ($595.6 million) was paid in medical claims, which was 70% higher on the previous year.
Total medical insurance claims grew by 37% to 44 million dossiers. A large part of the money was 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 their scope to include PRC tests.
Interestingly, despite the devastating impact of the 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 bloated bureaucracy of insurance companies and other hassles.
More than 25 million Iranians have medical insurance.
Third party auto insurance was the second major source of income generating 326.7 trillion ($907.6 million). CII data showed 34.9% growth in premium y/y.
Life insurance was the third top source of revenue, generating 145.2 trillion rials ($403.3 million) or 13.23% of the total in the eight months.
Auto body insurance with 5.94%, fire insurance 4.48% and liability insurance 4.45% were the other main earners.
More than 45.3 million insurance policies were sold during the period under review, 2.2% higher on the previous year. Total payout was 539 trillion rials ($1.49 billion) – 55.23% higher y/y.
Third-party vehicle insurance was the next big payout segment at 30.10% up 54.66% y/y. Payout ratio in 10 months was 49.11%, down 0.78 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.
