The insurance industry is moving on the right path, the minister of economy was quoted Wednesday by Iran’s Central Insurance Company as saying.
Share of the government in the insurance industry, represented by the ICIC, has fallen to less than half in recent years indicating a growth in the involvement of private insurance firms, Ali Tayyebnia said.
Backing policies adopted by ICIC, he said “The insurance industry is moving in the right direction.”
Given their mandate which is mitigating risks, “the insurance companies should be among the safest places,” the minister said, attributing the problems in the sector in recent years to the lack of effective supervision over the financial clout of a selected number of companies.
To this end, he called for more focus on capital adequacy of insurance companies and allowing more firms into the sector. He hoped that the easing of sanctions would help the industry get closer to international norms.
As announced earlier by ICIC officials, the insurance industry would access $20 million of its frozen assets and resume ties with European insurers once sanctions are lifted following the recent nuclear agreement between Iran and the six world powers. The funds blocked in European insurance firms belong to both the ICIC and other Iranian insurance companies.
