Get this report today!
Table of Contents
Includes 3 FREE quarterly updates
The Iran Insurance Report considers the prospects for both life and non-life insurers in the country. As of mid-2012, the latest data published by Bimeh Markazi Iran, the insurance regulator, suggests that total premiums increased by 27% in Iranian year 1389, which ended in March 2011 (please note this year is shown as 2010 in the tables in this report). This was a lot more than the growth of 15% or so that we, and other commentators had been looking for. The implication is that non-life penetration has risen decisively above the level at which it had stagnated in 2005-10, specifically 1.1-1.2% of GDP. In the coming months, we will be looking for further details as to what are the key drivers of this growth. It is not impossible that the major insurers have been able to increase prices. We would be amazed, though, if it is significantly because of developments in Iran’s miniscule life insurance sector. One of the defining characteristics of the economy is entrenched high inflation (and expectations) thanks to persistent monetisation of fiscal deficits. This produces an environment in which no prudent person would enter into a long-term savings contract. Unless and until economic policies in Iran change radically, the reality of the insurance sector will fall a long way short of its potential.
Iran’s insurance sector has a number of strengths, including scale in terms of gross written premiums per annum. Bimeh Iran, the largest company that is a state-owned enterprise, is one of the largest underwriters in the Middle East and would rate as a reasonably large insurer in most countries. Non-life penetration has, as noted above, consistently remained slightly above 1% of GDP. Among other things, this suggests the regulatory regime is reasonably sound. Iran’s insurers have managed to survive in the face of various challenges – not least of which is the almost complete lack of access to the global reinsurance markets. Unlike in other Middle Eastern countries, Iran’s insurance sector does not consist of a surprisingly large number of sub-scale non-life companies that are offshoots of local business interests that do not have a clear edge in the industry.
The sector is undergoing ‘privatisation’, via listings of companies on the Tehran Stock Exchange, and ‘liberalisation’, in that the decisions over products and pricing are moving from Bimeh Markazi Iran (the regulator and, to a certain extent, provider of reinsurance service) to the insurers themselves. However, in contrast to privatisation in other countries, the deals in Iran are not necessarily reducing government control and are certainly not increasing formerly state-owned companies’ access to capital. The limited data that is available suggests the main impact of ‘liberalisation’ is to transfer resources from shareholders of private sector companies (including the recently ‘privatised’ Bimeh Alborz, Bimeh Asia and Bimeh Dana) to the still state-controlled Bimeh Iran, employees and, to a certain extent, insurance customers. A new private sector insurer – Arman – opened its doors in March 2012.
Talk to Geoffrey
+1 718 618 4302
The Largest Collection of Market Research Reports
From +200,000 authoritative sources
Synopsis The report provides in depth market analysis, information and insights into the insurance industry in Aruba, including: ? The Aruban insurance industry's growth prospects by insurance segments ...
Synopsis The report provides in depth market analysis, information and insights into the insurance industry in the Isle of Man, including: ? The Manx insurance industry's growth prospects by insurance ...
Synopsis The report provides in depth market analysis, information and insights into the insurance industry in Guernsey, including: ? The Guernsey insurance industry's growth prospects by insurance segments ...
... Excellence in dc pension schemes, dcif will carry out a range of initiatives such as presenting the industry with papers, arranging seminars and debates, and in other ways acting to raise dc investment ...
... In some markets 6 age as a risk factor in insurance Substantial evidence to show that risk can vary significantly by age for main lines of insurance: Life cover Critical illness cover ...
... The estimates we have developed on the increase in premiums that will be required to fund the health insu taxes beginning in 2014. Overall, we note that the age-rating limitations result in no change ...
Reportlinker.com © Copyright 2013. All rights reserved.