Iran’s insurance regulator, Central Insurance of Iran (CII), plans to lower the country’s non-life and life cession rate to 9% and 17% respectively, valid until March 2023.
The Iranian insurance regulator sets a legal or obligatory cession to monitor market performance, according to Article 72 of the country’s Central insurance Establishment law. A decade ago, the rate was 25% in non-life insurance and 50% in life insurance.
In the most recent financial year, the rate was 10% for non-life and 20% for life insurance policies.
But now, a notice from the regulator explains that the mandatory cession rate will be reduced.
Iran has made expanding its domestic insurance industry a key part of its fifth five-year development plan. It aims to increase the number of people covered by health insurance from 4.3 million to 4.5 million people, and to give medical insurance coverage 5.2 million government employees and their families (up from 200,000 at present).
Earlier this month, the CII appraised the risk retention capacity of insurers, giving itself the top spot. The state-owned IIC can reportedly handle $107 million in risk. Pasargad Insurance Company is second at $43m.
