Central Insurance of Iran Saturday announced that insurance firms will issue personal auto policies through a central online platform, in line with plans to minimize illegal operation of insurance firms in the category. The obligation comes into effect from November 22, risknews.ir reported. Personal auto policies have often been singled out as the bane of the insurance sector. Purchasing a PAP in Iran is mandatory by law, which has made the category by far the largest item on insurers’ portfolios–more than 40%. However, unhealthy competition, mostly through price undercutting, has led to disruptions in the market. The government recently banned selling PAPs at low rates but the practice is still prevalent among insurers searching for new clients and higher profit.
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