The Central Insurance company of Iran (CII) on Saturday granted an operating license to one more general insurance company, Farda Smart Insurance Company, to offer digital service.
In a note published on Risknews website, the CII said that it expects Farda to focus on the development of smart products with the help of advanced technologies, such as artificial intelligence, and offer innovative solutions
"The company is expected to expand insurance cover in the deprived areas, create online and smart supervisory mechanisms, prevent fraud and human error, earn policyholders’ satisfaction and help the insurance industry embrace innovation," the note said.
Over the years the CII has hardly made a secret of its reluctance to increase the space for new players and restricted licensing to specialized firms, especially life insurance.
Measures crafted by the CII to shift insurers' focus from auto and medical insurance (two main moneymakers) to other emerging innovative segments, especially life insurance, have so far not produced the desired results.
However, following a recent shift in the regulator's policies the number of insurers, including reinsurance, life insurance and general insurance companies, is expected to increase.
The CII now says newcomers are on the radar to increase the penetration rate and enhance quality, referring to studies that found the domestic insurance industry has the capacity for 56 companies from the present 46.
This is while market observers claim otherwise, saying that the industry does not have the capacity for more players, at least not in the present difficult economic climate.
The CII says new licenses were issued only to applications compatible with its policies, namely innovation and the ability to empower the key industry.
The regulator recently issued license for four new reinsurance companies, namely Saman Re, Tehran Re, Moein Re, and Pars Ava Re; one life insurance company, Charisma Life Insurance Company, and one general insurance company, Pardis Insurance Company.
It is expected to issue permission for the establishment of more firms, namely Etemad Insurance, Bamdad Insurance, Soroush Insurance, Raya Reinsurance, Hamerz Life Insurance and Isatis Life Insurance.
