Central Insurance of Iran, the industry’s sole regulator, is not pursuing the reduction of the state-owned Iran Insurance Company’s market share, as it holds high untapped potential, the CII chief said.

“In adding to the share of private insurance companies, CII has no plans to reduce the market share of Iran Insurance Company, but we intend to develop its share,” Abdolnasser Hemmati also told IBENA, adding that this would entail filling idle insurance capacities.

As the official had announced before, more than $3 trillion worth of risks currently exist in Iran, whereas “only 30% of them have insurance coverage, meaning that 70% of the insurance capacities of the country are untapped”.

The CII chief added that all Iranian insurance companies, including Iran Insurance Company, are allowed to help fill these insurance capacities.

“I believe that the 30% market share belonging to Iran Insurance Company is a suitable share and private insurance companies have 70% of the market to themselves,” he said.

The government has been pursuing the policy of reducing the share of state-owned insurance companies, but Hemmati’s remarks mean that the policy does not include the biggest state-owned insurer IIC.

On Dec. 20, the Cabinet approved a measure based on which the government will sell its remaining shares in Asia, Alborz and Dana insurance companies which, barring Iran Insurance Company, are the only firms in which the government still holds a stake.

source:

2017, CII to Develop Untapped Insurance Potentials,  Saturday, December 30, p.1,<http://www..financialtribune.com/>