Iran: Minimum capital for insurers to be set at $26 mln
Source: Middle East Insurance Review | Apr 2017
The Iranian Cabinet has approved a proposal for the minimum capital required of insurers, with higher requirements set for new companies.
The proposal stipulates the minimum capital requirement for firms already operating in Iran’s insurance market to be IRR1 trillion (US$26 million), reported Financial Tribune.
New companies will need to have additional capital to get a licence. In addition to the IRR1 trillion minimum, non-life insurers will need to have additional capital of at least IRR300 billion; life insurers, at least IRR200 billion; and composite insurers, at least IRR500 billion.
For reinsurers setting up in Iran, the Cabinet reduced the minimum initial capital requirement from IRR4 trillion to IRR2.5 trillion.
For now, the industry regulator will not be issuing any new licences for general insurers as it wants to encourage the establishment of life insurers and other specialist insurers instead.
Middle East Life Insurance, the country’s first standalone life insurer, started operations in early February with an initial capital of IRR1.2 trillion.
Iran Insurance Company, the only state-owned firm, has the highest capital of IRR34 trillion in the country. The insurer is planning to raise its capital to IRR100 trillion.
With IRR4 trillion, Alborz Insurance, one of the big four private insurers, is the top private firm in terms of capital.