Iran Insurance Company’s share of premiums saw a 7.7% y/y decline, accounting for 31.7% of the total earned premiums during the two months that ended on May 20.
Data from the Central Insurance company of Iran, indicates a significant drop in market share for the state-owned giant insurer, which has seen a steady decline as new private sector players emerge.
The Ministry of Economy has been trying to put an end to IIC’s dominance in the market and improve competitiveness in the slowly emerging industry. The government prefers the IIC take a complementary role in the market and help promote innovation.
IIC also accounted for 45% of the total claims paid during the said period. Asia Insurance and Alborz Insurance accounted for 9.5% and 7% of indemnities respectively, risknews.ir reported.
PAP Dominance
Insurance companies earned 14.9 trillion rials ($487 million) from the sale of personal auto policies while its total earned premiums stood at 31.7 trillion rials ($1 billion) during the period.
IIC, Alborz, Asia, Dana and Parsian, as the five major insurance firms accounted for 63% of total earned premiums; however, they paid 76% in claims.
Mihan Insurance and Novin Insurance recorded a loss ratio of 164.3% and 102.47%, respectively. Pasargad Insurance, Saman Insurance and Ma Insurance–all subsidiaries of and affiliated to banks – recorded the lowest loss ratios.
Offshore Insurers
Iran Moein, a subsidiary to Iran Insurance Company active in Free Trade Zones, managed to sell 90,000 policies worth 484.6 billion rials ($15.8 million). Iran Moein recorded a loss ratio of 10%, during the same period.
Omid Insurance Company also sold 76,000 policies for 63.5 billion rials ($2.07 million). Omid Insurance is jointly owned by Alborz, Asia, Dana and Moallem insurance companies.
Hafez Insurance made 42 billion rials ($1.3 million) during first two months of the fiscal year that started in March. Iran Insurance Company is among the key shareholders of Hafez.
According to regulations, insurers authorized to operate in the FTZs, within the framework of these regulations, are not allowed to provide services to residents and entities in the mainland.
Rating Agents
Meanwhile the Supreme Council of Insurance on Tuesday passed an amendment to regulations concerning insurance brokers, putting insurance companies in charge of rating agents.
The CII, during the tenure of its former chief, had prepared guidelines for insurance firms to rate their agents.
The former administration of the CII had in fact put supervising insurance agents on the top of its agenda. The regulator had identified nearly 5,000 insurance agents who run a second business other than selling policies.
CII latest data for 2014-15 shows there are close to 38,926 agents providing sales services to 29 companies in the gradually growing sector.
Almost half of the agents were working for small companies, while close to a quarter of them were directly working for Iran Insurance Company as the only state-owned and the biggest insurance firm.
