Economy, Business And Markets

High Growth in Insurance Claims in Iran

High Growth in Insurance Claims High Growth in Insurance Claims

Iranian insurance companies have paid out over 35 million claims during the previous fiscal to March 20, 2017, which indicates a growth of 10 million compared to its previous year.

According to the president of the Central Insurance of Iran, insurance firms have paid more than 250 trillion rials ($6.05 billion) in compensation during the previous fiscal, with over 100 trillion rials ($2.41 billion) of the figure covering traffic accidents.

“Statistics clearly highlight lack of risk management in our insurance firms,” Abdolnasser Hemmati was also quoted as saying by IBENA.

The CII president noted that instead of trying to sell more policies, insurers should endeavor to manage their risks and reduce the amount of compensations they have to pay each year.

The number of claims during the last Iranian year exceeded 35 million cases while during the fiscal to March 19, 2013, the figure did not cross 13 million.

During the next two fiscals to March 2015, the number of claims reached 19 million, registering a 6 million increase during the two-year period.

However, the number of insurance companies' payouts dramatically increased during the next two years by 7 million and 10 million respectively, as the figure stood above 35 million for the previous Iranian fiscal (ended March 20, 2017).

Insurers have also managed to sell more than 50 million policies during the previous fiscal, which posts a growth of 10.35% year-on-year.

According to the statistics announced by the Central Insurance of Iran, more than 80 trillion rials ($19.37 billion) in compensations have been paid by Iran Insurance Company—the market leader and the sole state-owned firm—which accounts for 30% of the insurance market’s share in the country.

IIC is followed by Asia, Dana and Alborz insurance companies respectively in paying the biggest portions of compensations during the previous Iranian year.

Asia Insurance has paid 20 trillion rials ($484.2 million) in claims during the aforementioned year while Dana and Alborz paid about 15 trillion rials ($363.1 million) and 14 trillion rials ($338.9 million), respectively.

The insurance industry’s loss ratio stood at 63.8% during the fiscal year that ended on March 20, marking a year-on-year increase of about 5%.

Mellat Insurance Company, affiliated to Bank Mellat, recorded the highest loss ratio during the period at 104.35%. Novin Insurance, affiliated with Eghtesad Novin Bank, and Mihan Insurance come next, with loss ratios of 81.83% and 80.74%, respectively.

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