CII Notifies Reinsurance Directive

As part of projections made in the Sixth Five-Year Development Plan (2017-22), which calls for gradually reducing the percentage of premiums that Iranian insurance firms are obligated to entrust to the Central Insurance of Iran for the purpose of reinsurance, the director of the industry’s regulator sent a letter to all insurers to notify this directive. According to the letter sent by Abdolnasser Hemmati to all insurance companies, the compulsory reinsurance share of insurance companies for non-life categories, which currently stands at 14% will reduce by 1% annually until it reaches 10% in 2022. This is while the compulsory reinsurance share of life categories will decline from the current 24% to 20% during the next four years, IBENA reported. In late February, the Cabinet convened and decided that the cap on compulsory reinsurance cession should remain unchanged for the remainder of the current fiscal year (ending March 2018).