Iran: State-owned insurer snowed under by uncollected premiums
Source: Middle East Insurance Review | Jan 2017
State-owned Iran Insurance Company (IIC), the largest insurer in Iran, has been facing major challenges in recent months, as its share of the market shrinks and its debts mount.
Mr Mohsen Pourkiani, IIC Chairman and Managing Director, has warned that if no effective action is taken, the giant insurer might have to go under, reported the Financial Tribune.
“A variety of problems are eating away at the company. This could make it next to impossible to get back on its feet as was the case during the Iran-Iraq war (1980-88) or the sanctions era,” Mr Pourkiani was quoted as saying. He revealed that IIC is paying IRR220 billion (US$6.8 million) in claims on a daily basis.
According to data from Central Insurance of Iran, the insurance industry regulator, IIC now has a 40% market share, after losing 15% of the share in the past six months. One factor is that the insurer has had to turn away business because of the bad creditworthiness of some customers.
IRR1,000= US$0.03