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Property Insurance Gaining Traction

Property Insurance Gaining TractionProperty Insurance Gaining Traction

The total number of properties insured against natural disasters has increased by 10% in the outgoing fiscal year (ends March 19).

Mohammad Farid Latifi, Disasters Management Organization’s deputy for reconstruction, said of the 20 million residential units in the country only 10% were insured against natural disasters up until March 2014.

“Currently, the number has climbed to 20% and is expected to reach 50% by March 2017,” Risknews website quoted him as saying.

Property insurance would be used instead of government funds for paying claims caused by natural calamities.

“Properties in rural and urban areas now receive 50 million-60 million rials ($1,650-$2,000) in disaster relief,” he said, adding that the amount would be doubled if the property is covered by insurance policy.

Iran has suffered from 125 cases of natural disasters over the past 25 years, resulting in 73,000 fatalities, 145,000 injuries, and more than 41 million lives affected, according to data published by the Central Insurance Company of Iran.

 Performance

Total insurance industry premiums reached 149 trillion rials ($4.97 billion) during the eight months ending Nov. 21.

During the period insurers paid 80.9 trillion rials ($2.66 billion) in claims marking a 22.7% year-on-year increase, Central Insurance company website reported last week.

Private insurers’ share of the market has grown, as during the said period they accounted for 57.4% of the total premium, while the Iran Insurance Company, as the only government-owned firm, accounted for 42.6% of the premiums.

Insurers sold a total of 31.2 million policies in the same period which indicates a 9% growth compared to a year ago.

According to CII data, third party auto insurance and medical insurance account for the largest portion of the policies sold, accounting for 35% and 29.4% of total respectively. The two categories also top the list of indemnities at 40% and 33.7%, respectively.

Financialtribune.com