Kathmandu. Despite international sanctions and strict regulatory oversight, Iran’s insurance sector is booming. Iran’s insurance market is overseen by the Central Insurance Board of Iran (Bimeh Markazi).
Despite the economic pressures, the sector remains relatively stable due to mandatory insurance products. Motor third-party liability (TPL) insurance plays a major role in Iran’s insurance market. Since this insurance is mandatory for all vehicles in Iran, it has long accounted for a significant portion of the total insurance premium.
In addition to motor insurance, the marketplace also offers many other essential insurance products, including property and fire insurance, liability insurance, marine and engineering insurance. In recent years, the demand for life insurance and supplementary health insurance has been gradually increasing.
Motor accidents account for a significant portion of insurance claims. Compulsory motor insurance and increasing road traffic are the primary reasons for this.
On the other hand, natural disasters such as earthquakes and floods affect property insurance claims. Similarly, rising healthcare costs are driving up health insurance claims.
Insurance contracts in Iran are governed by the country’s civil law and insurance laws. Under these laws, it is mandatory for customers to disclose relevant information about their risks when purchasing an insurance policy. Generally, losses from war-related damage, intentional acts and unknown risks are excluded from insurance coverage.
Currently, Iran’s insurance market is largely controlled by domestic companies. Foreign participation is low due to international sanctions. In addition, government influence plays an important role in regulating the market and setting premiums. –Agency
