Most Iranian insurance companies have managed to meet the government's requirements regarding minimum capital to be able to operate.
Regulations calling for insurance companies' capital threshold, published by the Central Insurance company of Iran, show that all companies have managed to increase their capital by April 16, except for Tose'e Insurance Company, which now is not in business.
The government set new minimum capital requirements for insurers in 2017. It says at least 1 trillion rials ($6.2 million) is needed for eligibility of operation license for insurance firms in the mainland.
New insurance firms would need additional capital for getting the license, in each insurance category, in addition to the initial capital. The extra amount is set at 300 billion rials ($1.87 million) for non-life categories and 200 billion rials ($1.25 million) for operating in the life insurance sector.
The government has set 2.5 trillion rials ($65.18 million) as minimum capital requirement for starting reinsurance firms.
CII has announced that it would consider merging companies with lower capital. At present, 29 insurance and reinsurance firms have CII permits.
Tose'e Insurance is the only company that has failed to meet the criteria. The Supreme Council of Insurance suspended the company’s operational license in February 2015. After its operation permit was suspended, the council appointed Iran Insurance Company to take over TIC.
The company, however, has recently claimed that it was working on plans to resume operation by the end of the current Iranian fiscal year (March 2021), probably as a subsidiary of Iran Insurance Company.
IIC Tops the List
The government-owned Iran Insurance Company tops the list of insurers with 34 trillion rials ($212.5 million). It is planning to boost its capital to 110 trillion rials through revaluation of its fixed assets.
Pasargad Insurance Company, affiliated to Bank Pasargad Iran, is second with 5.1 trillion rials ($31.8 million), putting it atop the list of private insurers in capital terms.
The privatized Alborz Insurance, and Bank Parsian- affiliated company, Parsian Insurance, follow with 4 trillion rials ($25 million).
Iranian Re, affiliated to Bank Pasargad Iran, and Amin Re, are the two reinsurance firms in Iran. Both have increased their capital to meet the new requirements. Iranian Re's capital now is 3.2 trillion rials ($20 million) and of Amin Re 3 trillion rial ($18.75 million).
