#Iran's #Life #Insurance #Sector on #Growth #Track

Iranian insurance firms generated 21.7 trillion rials ($525.9 million at market exchange rate) from selling life policies during the eight months to November 20, marking a 37.19% growth compared with the same period of last year. Central Insurance of Iran’s database also shows that life insurance accounted for 12.15% of insurers’ total premium income during the period. The share was recorded at 10.66% during the same period of last year and 11.98% in the month ending October 21.

Insurers paid 7.4 trillion rials ($179.3 million) to 240,000 life policyholders as indemnity. The payout ratio of the category stood at 34.2% for the eight months to November 21.
According to Sanhab data, insurance firms collectively earned 179 trillion rials ($4.33 billion) from selling 34 million insurance policies in all categories during the eight-month period. A year-on-year comparison of data indicates a 20.4% growth in premium income and 9.8% increase in the total number of sold policies. The total paid claims amounted to 101 trillion rials ($2.44 billion) during the period, marking a 25.6% growth YOY.

Policymakers have been making great efforts for promoting life insurance. The Iranian Parliament recently required the industry to boost life insurance revenues from the current 12% to 50% of the total insurance revenues by the end of the sixth five-year development plan (2016-21). CII, the industry’s regulator, announced that it will not issue new licenses for general insurance companies, as “the industry needs more specialized insurance firms at present”. Middle East Life Insurance Company, affiliated with Middle East Bank, obtained CII’s license recently, becoming Iran’s first insurance firm to specialize in life insurance category.