Insurers generated 1,268 trillion rials ($3.12 billion) in premium in the first nine months of the current fiscal year (ends March) -- up 58.4% on the same period last year.
Medical insurance topped the revenue stream outperforming the strong and lucrative third-party auto segment for the third month in a row.
The Central Insurance company of Iran (CII) data said companies made 382.3 trillion rials ($941.6 million) from medical insurance -- 165.3% higher compared to the same period last year.
Medical insurance accounted for 30.81% of the portfolio in the nine months -- over and above third-party auto insurance with 29.6%.
Growth in the normally laggard medical sector is said to be mostly because of contracts signed by two private insurance companies last 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 last May. The two deals collectively generated 114 trillion rials ($280 million) in premium, Risknews reported.
During the period companies sold 791,000 medical insurance policies, 4% higher on the corresponding period last year. However, 251.6 trillion rials ($619.7 million) was paid in medical claims, which was 68% higher on the previous year.
Total medical insurance claims grew by 35% to 51.14 million cases. A large part of the money was to cover hospital bills related to the Covid-19 pandemic.
Soon after the disease struck in late 2020, insurance companies were told to cover all the expenses of policyholders who had fallen ill and expand their scope to include PRC tests.
Interestingly, despite the devastating impact of the disease, insurers soon 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 related financial hassles.
More than 25 million Iranians have medical insurance.
Third party auto insurance was the second major source of income at 376.2 trillion ($904.4 million). CII data showed 35% growth in premium y/y.
Life insurance was the third top source of revenue, generating 180 trillion rials ($443 million) or 14.21% of the total in the nine months.
Auto body insurance with 6.14%, fire insurance 4.39% and liability insurance 4.45% were the other main earners.
More than 52.5 million insurance policies were sold during the period, 4.16% higher on the previous year same time. Total payout was 642 trillion rials ($1.58 billion) – 56.65% higher y/y.
Third-party vehicle insurance was the next big payout segment at 30.38% up 54% y/y. The payout ratio in nine months was 50.46%, down 0.57 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.
