Iran Insurance Company, the sole state-owned company, still generates the most premium income, despite efforts to increase and expand private firms.
Data published by the Central Insurance company of Iran, the market regulator, show the IIC accounted for 32.46% of industry's premium income in the first seven months of the current fiscal year that started in March.
The company generated 195.4 trillion rials ($693 million), 33.6% higher than in the corresponding period.
Asia Insurance Company, now privatized, registered 42.47% growth in premium income during the same period. Asia ranked second in terms of market share with 11% from the total premium.
Dana Insurance Company and Alborz Insurance Company, both privatized, were next with 7.94% and 6%, respectively. Alborz managed to post the highest growth in premium income compared to the other top players –86% to 36.2 trillion rials ($128m).
Pasargad Insurance Company, affiliated to Bank Pasargad Iran, was fifth generating 5.88% of the total premium during the seven months.
Two life insurance companies, Middle East Life Insurance Company and Baran Life Insurance Company, recorded the highest growth in premium income --545% and 170%, respectively.
Insurance companies generated 602 trillion rials ($2.13 billion) from 38.5 million policies during the seven months since March 2021.
The CII expects growth in premium income in the current fiscal year despite the hurdles.
"The sector made 820 trillion rials ($3.4 billion) in the previous fiscal year. This is projected to exceed 1,100 trillion rials ($4.3 billion), this year," Gholamreza Soleimani, the CII head has said.
IIC Monopoly
The IIC sold 15.59 million insurance policies, or 40% of the total during the seven months and accounted for 28.5% of total payout during the same period.
IIC's board recently approved increasing capital by 154.971 trillion rials (almost $549m) via revaluation of fixed assets. This boosted IIC capital from 34.2 trillion rials ($121m) to 189 trillion rials ($670m).
"This is good for our company as it lets us improve our contribution as the only government player in the market to the national economy," Majid Bakhtiari, the CEO has been quoted as saying.
Private insurers are apparently not on the same page. The monopoly of the state giant is often opposed by other companies. IIC’s policy in offering discounts on premium and claims is often seen as unfair and against free competition.
The government and CII have announced plans to reform the IIC and open the field for private insurance firms to enlarge the key industry.
Expanding the Field
The regulator's recent policy to increase the number of insurance companies should help promote competitiveness. The CII has said that it will authorize new insurance companies only if they come with innovative plans.
So far 33 insurance companies operate in Iran including offshore firms and reinsurance companies. Amin Re and Iranian Re are the two main specialized reinsurance companies.
The number is likely to reach 46 with the regulator saying that 13 new firms are getting ready to enter the market, including two new life insurance companies Karizma Life Insurance and Hamerz Life Insurance; four reinsurance companies, Saman Reinsurance, Pars Reinsurance, Tehran Reinsurance and Raya Reinsurance; and two general insurance firms, Pardis Insurance and Farda Insurance.
The regulator is set to issue permission in principle for five other firms, namely Etemad Insurance, Bamdad Insurance, Soroush Insurance, Persian Reinsurance, and Isatis Life Insurance companies.
