Market’s prospects raised by success of private sector companies

The licensing of private insurers in Iran in 2001 has provided the market with real competition for the first time in years. These companies are innovative and have been established on western principles. With around 18% of gross premiums currently being written by the private insurers, change may be coming quicker than originally anticipated. The next few years will be pivotal in the development of the Iranian insurance market

The Iranian insurance market is a curious hybrid of public and private principles. Indeed, the major change that has taken place in the market in the last few years is the opening up of the market to private insurance companies, a number of which have banks as shareholders.