Non-Life Insurance Represents the Largest Segment of Iranian Insurance Industry, Claims Timetric
20 Feb 2013 • by Natalie Aster
The Iranian non-life insurance segment was strongly influenced by rising levels of GDP growth and an increase in the motor insurance category, driven by the rising number of road accidents. With a forecast GDP growth of 13–16% per annum, this segment is expected to increase at a CAGR of 12.4% over the forecast period. In addition, the industry is also expected to be driven by the rising levels of risk awareness among Iranian consumers. Growth in the property, automobile and industrial sectors is anticipated to drive the growth of the segment over the forecast period. Motor insurance accounted for the largest market share of non-life insurance segment followed by property insurance in 2011, which is expected to continue its domination over the forecast period.
The Iranian construction industry grew significantly due to national and international investment in construction. The Iranian construction industry is considered the largest in the Middle East and according to the Central Bank of Iran, around 70% of Iranians own homes, indicating that a large amount of idle money is entering the market. The Iranian construction industry’s annual turnover valued US$38.4 billion in 2010, which is expected to grow over the forecast period and be driven by large-scale economic growth. The Iranian property insurance category, which was the second-largest in the segment, is also expected to grow at a CAGR of 11% over the forecast period, in line with rising disposable incomes and the growing middle-class population.
According to the report “Non-Life Insurance in Iran, Key Trends and Opportunities to 2016” by Timetric, in terms of written premium, motor insurance accounted for 47.1% of the Iranian insurance industry in 2011, with the growing number of road accidents raising consumer awareness of third-party liability insurance. Compulsory third-party motor insurance brought in by the Iranian government also played an important role in driving the overall insurance industry. Iran has a population of around 75 million, and more than 25,000 people die in road accidents every year. This is high when compared to Europe, which has a population of 500 million and a death toll of less than 35,000 people in terms of road accidents. Consequently, the Iranian motor insurance category grew at a CAGR of 18.3% during the review period.
Non-Life Insurance in Iran, Key Trends and Opportunities to 2016
Published: August, 2012
Price: US$ 1,950.00
Non-life insurance is the largest segment in the Iranian insurance industry. The country’s industrial growth increased GDP and per capita annual disposable income (PCADI). The growth in PCADI is expected to lead to a rise in the middle-class population and an increase in property and automobile sales.
More information can be found in the report “Non-Life Insurance in Iran, Key Trends and Opportunities to 2016” by Timetric.
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