Pardis Insurance Company has received an operating license allowing the company to handle risks in all insurance categories.
The Central Insurance company of Iran (CII) in a note called on Pardis to focus on developing smart products using advanced technology such as artificial intelligence, and offer innovative solutions.
"The company is expected to expand into deprived areas, create online and smart supervisory mechanisms, curb fraud and human error, satisfy policyholders and help the insurance industry embrace innovation," the CII said in a note.
Over the years the CII has hardly made a secret of its aversion to increase the space for new players and has restricted licensing to specialized firms, especially life insurance.
Measures by the CII to push insurers away from auto and medical insurance (two top moneymakers) to other emerging 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 say the domestic insurance industry has the capacity for 56 companies from the present 48.
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 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.
The regulator granted an operating license to one more general insurance company earlier this year, Farda Smart Insurance Company, to offer digital service.
Hummers Life Insurance Company has received an operating license, making it the fourth specialized life insurance firm in the domestic market.
It is expected to issue permission for the establishment of more firms, namely Etemad Insurance, Bamdad Insurance, Soroush Insurance, Raya Reinsurance and Isatis Life Insurance.
Iran's insurance market reported decent growth in the last fiscal year that ended in March with total premium income reaching 1,754 trillion ($3.2 billion).
The y/y growth was 49.95%, according to CII data. The biggest contributor to insurance premium was third-party auto insurance accounting for almost 31.2% of the total. Medical insurance was next with 26.16% followed by life insurance 14.10%.
In terms of premium growth, the highest was seen in the medical category as it surged by a whopping 102.68% from last year. The auto accident, money and transportation categories followed with 86.8%, 84.38 and 60.73% growth, respectively.
Life insurance sector’s premium registered 34.75% rise, though its contribution to the industry's portfolio was slightly lower than the year before, when it accounted for about 15.7% of total premium.
Total insurance policies sold in the last calendar year was 74.11 million, up 3.65% compared to the previous year. Third-party auto insurance as usual had the largest share in sales with 35.6% of the total, followed by driver liability category at 34.95%.
