Number of Private Life Insurance Companies in Iran Is on Rise, According to Timetric
25 Sep 2012 • by Natalie Aster
In terms of the Iranian insurance industry, the life insurance segment represented the smallest share of 7.4% in 2011. The presence of factors such as consumer austerity measures and government initiatives promoting life insurance coverage, mean the segment is expected to grow over the forecast period (2012–2016). During the global financial crisis, the segment’s growth rate was adversely impacted, however, it is expected to post a CAGR of 17.7% over the forecast period as consumer confidence increases. The introduction of government-led promotional campaigns is anticipated support such levels of growth over the forecast period.
As a percentage of GDP, Iranian life insurance penetration measured 0.11% in 2011, this is considered one of the lowest in Western Asia. During the review period (2007–2011) the penetration rate increased from 0.06% in 2007 to 0.11% in 2011. This figure is forecast to reach 0.16% in 2016 as levels of consumer awareness regarding the benefits of insurance coverage rise and government-backed marketing initiatives are implemented.
The new report "Life Insurance in Iran, Key Trends and Opportunities to 2016" by GBI Research says that the Iranian government’s pro-market policies have included building free trade zones and encouraging privatization. As such the number of state-owned insurance companies has decreased from four in 2006 to one in 2010, whereas the number of private insurers increased from 16 in 2008 to 21 in 2010. In terms of distribution the number of agents increased from 11,530 in 2008 to 19,554 in 2010. The increase in private insurance companies and agents supported the growth of life insurance firms, which increased at a CAGR of 30.2% during the review period.
In terms of GDP, the Iranian economy grew by 2.5% in 2011. The nation’s economy is the 17th largest in the world in terms of purchasing power and 26th in terms of market value. Substantial investment programs to increase per capita GDP over the forecast period are expected to drive the demand within the life insurance segment. The gradual increase in employment opportunities and low retirement age, which stands at 45-years, will also encourage people to invest in life insurance in order to secure their futures.
More Studies on Insurance in Iran by Timetric Include:
- Non-Life Insurance in Iran, Key Trends and Opportunities to 2016
- Personal Accident and Health Insurance in Iran, Key Trends and Opportunities to 2016
- Reinsurance in Iran, Key Trends and Opportunities to 2016
More new market research reports by can be found at Timetric page.
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