Insurance industry Banking and insurance in Iran

the central insurance of iran (bimeh markazi iran) in charge of regulating sector in iran. 5 insurance firms dominate sector, 4 of active in commercial insurance. leading player iran insurance company, followed asia insurance company, alborz insurance company , dana insurance company. export , investment insurance deals foreign trade. insurance companies asia, dana , alborz listed on stock exchange in 2009 after review , improvement in financial accounts, internal regulations , organizational structure nationwide.

in 2006 market share private insurance companies stood @ 54% , 46% governmental insurance companies. @ end of 2008, there 20 insurance firms active in market, 4 of state-owned (with 75% market share). of 2014, twenty-five insurance companies active in iran , all, except one, privately owned. parsian insurance became largest privately owned company listed on tehran stock exchange in 2010. parisan third largest insurance provider in iran.

in 2008, total insurance premiums generated in iran $4.3 billion. less 0.1% of world’s total, while iran has approximately 1% of world’s population. insurance penetration rate approximately 1.4%, below global average of 7.5%. underdevelopment evident in product diversity.

approximately 60% of insurance premiums generated car insurance. there 14 million vehicles in iran , 90 percent of them insured (2012). of 10 million motorcycles operate on iran s roads 2 million insured. also, 95% of premiums come general insurance contracts , 5% relate life products (against world average of 58% life insurance in 2011). 1 of defining characteristics of economy entrenched high inflation (and expectations) persistent monetisation of fiscal deficits. produces environment in no prudent person enter long-term savings contract. according business monitor international, unless , until economic policies in iran change radically, reality of insurance sector fall long way short of potential.

blood money $67,500 in 2011, down $90,000 year before.

since 2012, iran insuring own fleet of oil tankers because of international sanctions.

payout ratios have shown consistent growth on years. last year, industry average payout ratio 86%. iran has 2 re-insurers. insurance premiums come below 1% of gdp. partly attributable low average income per head. in 2001/02 third-party liability insurance accounted 46% of premiums, followed health insurance (13%), fire insurance (around 10%) , life insurance (9.9%).

the central insurance of iran in process of implementing deregulation within industry , migrating tariff-based regulation regime prudential based 1 (such solvency regime), in line internationally accepted standards.

insurance industry’s payout ratio stood @ 63.8% during fiscal year ended in march 2016. insurers generated premiums totaled $6.5 billion during said period. iran insurance company, state-owned firm, accounted 39.47% of premium. asia insurance , alborz insurance trail big margin behind iic, holding 10.15% , 7.56% of market’s share, respectively.

third-part auto liability accounted 37.6% of insurance firms’ total generated premiums during year ended in march 2016, insurers selling 19.18 million auto policies in period. of 2014 total (non-life) market premium 1.27% of gdp $69 per capita spent on insurance.

as of 2016, norway s skuld (shipping), uk s steamship mutual , standard club (shipping), protection , indemnity (p&i) clubs (shipping), france s coface (export guarantee agency), italy s sace (export credit agency), germany s hermes (export credit agency), austria s oekb (export credit agency) , switzerland s serv (export credit agency) doing business in iran. many large reinsurance companies considering returning iran (including lloyd s, allianz, zurich insurance, hannover re , rsa).