In its last appraisal of risk retention capacity, the Central Insurance company of Iran (CII) allowed 18 companies to accept higher risks.
According to a report seen on the CII website, the state-owned Iran Insurance Company tops the list and can now handle 51.13 trillion rials ($172 million) in risks in different categories.
Pasargad Insurance Company, affiliated to Bank Pasargad Iran, is second with 13.8 trillion rials ($48m) worth of risks.
Third is Asia Insurance Companywith 12.64 trillion rials ($42.4 m) followed by Dana Insurance Company at 10.17 trillion rials ($34m).
Alborz Insurance Company, Kowsar, Parsian Insurance and Mellat insurance are the other insurers with acceptable risk retaining capacity.
Hafez Insurance Company, Baran Life Insurance Company and Hekmat Saba are at the lower end of the list.
Risk retention capacity announced by the CII are based on the balance sheets of insurers released on August 22.
The figures also include the capacity of reinsurance companies as per which Iran Moein Reinsurance Company is in the lead with permitted risk capacity of 2.55 trillion rials ($8.58m).
Iran Moein recently got permission from the regulator to shift its operations from a general insurance company to a reinsurance company.
Iranian Re, affiliated to Bank Pasargad Iran is next with 2.43 trillion rials ($8.19m), followed by Amin Re 2.14 trillion rials ($7.2m).
The recently established company, Saman Re is allowed to accept risk up to 250 billion rials ($840,000), the lowest in the market.
The regulator of the insurance industry also increased the risk retention capacity for several insurance companies including IIC, Asia, Dana, Alborz, Kowsar, Parsian, Moalem, Saman, Razi, Karafarin, Ma, Tejarat-Nou, Hekmat Saba, Omid, Arman, Asmari, Middle East Life Insurance and Baran Life Insurance companies.
The capacity was cut for three companies in the latest update including Dey Insurance, Sarmad and Iran Moein Reinsurance Company.
Risk retention in the insurance industry refers to the amount of risk that an insurance company is willing to pay for a policy, risk or group of risks.
The more risk a company assumes by underwriting new insurance policies, the more premium it collects and invests. When an insurer accepts additional hazards it actually increases the possibility of insolvency.
A company's risk retention capacity, or the maximum amount of acceptable risk, is a crucial component in its overall operations.
