Economy, Business And Markets

3 New Insurers Due to Start Work

3 New Insurers Due to Start Work3 New Insurers Due to Start Work

Three new insurance companies are set to start operating in the year that started March 21, said Mohammad Ebrahim Amin, director of Central Insurance of Iran (CII), the primary insurance regulator.

Earlier, the Supreme Insurance Council ruled that the three companies will be established soon in the year. "Legal procedures are now underway," Amin stated, as reported by Eghtesad News.

After a framework deal was reached between Iran and the P5+1 (Russia, China, France, Britain, the US plus Germany) over Tehran's nuclear energy program in Lausanne, Switzerland last Thursday, several European blue-chip insurance companies have expressed interest to start cooperation with Iran.

Amin said necessary factors, above all, are investment, technological knowhow, and the cooperation of international companies with insurers "inside the country" if the industry is to grow.

Despite intensification of sanctions in recent years, Iranian insurance companies managed to provide a variety of services to local customers, he noted.

TIC Case

On the issue of the losses incurred by customers of Tose’e Insurance Company (TIC) the official said that by now "1.5 trillion rials ($53 million at official exchange rate) of the compensations have been covered."

Iran Insurance Company (IIC) took over TIC after the company’s work permit was nullified in February due to illegal activities. With the financial assistance of the Central Insurance, IIC vowed to compensate the losses of the TIC's customers. Amin said the "case is still under investigation."

DIC Case

Similarly in March, Dey Insurance Company (DIC) had also received a warning from the Central Insurance, following reports that the reserve requirements submitted by the company for the previous fiscal year (ending March 20) were much lower than the set minimums. The company was given two weeks to correct the issue and report back.  

Amin clarified that although DIC was financially suffering and had failed to meet its obligations to the Central Insurance, contrary to Tose’e Insurance Company; shareholders of DIC closely cooperated with the Central Insurance in order to resolve the issues.

With the joint cooperation of the primary insurance regulator and the debtor, the capital of the company was raised and the needed managerial measures were taken, thus "the crisis was successfully overcome."