Property and Casualty Insurance Market In Iran - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Property and Casualty Insurance Market In Iran - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Iranian economy was the hardest hit economy by the COVID-19 pandemic in Asia. The pandemic has exacerbated the already existing challenges, as well as the economic pressure of sanctions. The pandemic resulted in the decline of the GDP and a rapid rise in unemployment in the country. However, property and casualty insurance showed growth despite the crumbled economy due to pandemics.

The gross premium for the overall insurance sector is showing remarkable growth in double-digit over the years. Almost all property and casualty insurance segments such as Fire, Motor PD/ Third party, Liability, Marine, Aviation, and Engineering showed a growth rate for the year 2020/21. Iran insurance is rapidly embracing technology for insurance underwriting and distribution. Another notable move in the course of underwriting is the gradual deployment of paperless insurance policies, which contributes to a rise in overall satisfaction and a drop in the personal approach to insurance. Another important aspect of the supervisory body's recent policymaking in Iran's Insurance landscape is the definition of premium rates as well as terms and conditions of policies that do not conform to inflation rates, as well as the emphasis on psychological security rather than profit, which clearly distinguishes this industry from others.

Key Market TrendsThe Premium Written for Various segment of Property and Casualty Insurance is on Rise.

For 2020/21 all the segments of property and casualty insurance in Iran showed remarkable growth. Insurance classes yielded acceptable growth and an increased volume of premiums for all of them. The largest increase in premium was seen in the Marine Hull and Oil and Energy Insurance segment, while the segments such as Fire, Motor PD, Motor TP, Liability, and Aviation insurance also showed above-average growth for the premium. All the segments of Iran insurance showed growth in premium for the year. As a result, the overall growth rate of direct written premium for the year was 37.9%.

Motor TPL Represent the Largest Segment for both Premium Written and Paid Loss

The total premium for the Motor Third Party Liability insurance was IRR 275,229 for the year, which increased by more than 30% compared to that of the previous year and represented the single largest segment in the Iran Insurance landscape, contributing to almost one-third of the total premium written in industry. Similarly, Motor TPL paid a loss of IRR 176,013 Billion which was 26.2% more than that of the previous year and represented around 40% of the total paid loss in the Iran insurance market. This is mainly attributed to the upsurge in the court reward for blood money -dieh in Islamic law- and the number of car accidents. It is notable that 46.5 percent of the market total paid loss belongs to motor TPL & PD.

Competitive Landscape

The Iranian Property and Casualty Insurance market is highly competitive. There are a total of 32 private insurers operating in the Iran insurance market along with one state-owned insurer. Iran Insurance has a total of 33 companies with 1,384 branches. There are 1082 brokers with 39,580 general agents. Major players in the segment include Raazi Insurance, Taavon Insurance, Parsian Insurance, Asia Insurance, etc.

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