Challenges of Solvency Supervision in Insurance Sector

Capital Intelligence, the international credit rating agency, believes that a strong and comprehensive risk-based supervisory system is essential to ensure the soundness of Iran’s insurance sector. 
In its analytical report on Iran’s insurance sector for 2018, it said that the country’s regulatory system is–despite some risk-based features in the solvency formula–still driven by the Solvency I-type rule-based system, with many prescriptive regulations regarding the split of investments, calculation of net retentions, tariffs and solvency.