The High Council of Insurance, the insurance industry regulator, has issued agreement in principle for the founding of Pardis Insurance Company.
According to Risknews, the general insurance company will focus on innovative technology to offer quality services.
Currently, 33 insurance companies operate in Iran, including offshore firms and reinsurance companies. The HCI approved four new companies in the past few months.
The Central Insurance company of Iran (CII) has welcomed establishment of new firms. "Investors want to start insurance companies. Newcomers will help boost competitiveness" in the gradually growing industry, Gholamreza Soleimani, the CII boss said.
However, market observers say the industry does not have capacity for more players, at least not in the present economic climate. Moreover, lack of modern technology in the insurance industry, such as lack of a core platform for collecting insurers’ data, or fraud detection platforms, obviously pose challenges to newcomers interested in insurtech solutions.
Baran Life Insurance Company received operational license in summer to become the second specialized insurance company in Iran. The HCI recently granted permission for the establishment of Charisma Life Insurance Company.
Saman Reinsurance Company got a license and is to make a debut soon. It will be the third and the second affiliated to Saman Bank. Pars Reinsurance Company, affiliated to Parsian Financial Group, is the fourth reinsurance company in the country of 83 million people raising hopes for improving competitiveness in the slowly emerging reinsurance sector.
Only two reinsurance companies operate in the domestic market, namely Amin Re and Iranian Re. A limited number of insurance firms have permits to enter the reinsurance industry. Experts say loopholes and cumbersome regulations deprive the reinsurance industry from playing its expected role.
