Performance evaluation of the insurance industry/ payment of 39.5 damage claims

The number of insurance policies issued by the end of July increased by 5.7% compared to last year, but the number of claims paid in the insurance industry decreased by 8.4%.

At the end of every month, the Central Insurance Company of Iran publishes a report on the country’s insurance industry figures and reviews the performance of this sector and publishes it to the public. The last report published in this field is related to July of this year, in which the performance of the insurance industry in the first four months of 1402 was analyzed. It should be noted that the information presented in this report was collected based on the self-declaration of insurance companies in the Sanhab system.

Central Insurance data show that the number of insurance policies issued from the beginning of this year to the end of July has increased by 5.7 percent compared to the same period last year. However, the number of claims paid by insurance companies during this period was 8.4% lower than the same period in 2011.

In addition, the Central Insurance report indicates that the share of the non-governmental sector in the total issued insurance premiums is equal to 79.1%, and this figure for paid damages also reaches 76%.

62% increase in the value of issued insurance policies

According to the report published by Central Insurance, insurance companies have issued more than 22.1 million insurance policies by the end of July. The value of these insurance policies was equal to 88.2 thousand billion tomans, which has increased by 62% compared to the first four months of last year.

Also, medical insurance with a share of 41.5% has the largest share of the total premium portfolio produced in the market, followed by third-party fields with 24.4%, life with 11.3%, and car body with 5.9%.

In addition to that, the main reason for the 5.7% growth in the number of insurance policies issued is the growth of this number in the two fields of driver and third-party accidents, each of which has a share of about 35% of the total insurance industry portfolio, and the growth rate of the number of issued in Each of them is about eight percent.

In which fields were the most damages paid?

The number of damages paid by the end of July this year has exceeded 22.3 million; In this way, insurance companies have paid 39.5 thousand billion Tomans in damages to policyholders during this period, which is 83.9% more than the same period of 2011.

In addition, the largest share of damages paid by insurance companies still belongs to the four fields of treatment, third party, life and car body with 42.8%, 27.3% and 10.1% respectively.

Also, Central Insurance stated that the main reason for the 8.4% decrease in the number of paid claims was the 11.4% drop in medical insurance with a 92.4% share of this field in total claims.

The loss ratio of the insurance industry increased to 44.8%

Damage ratio is one of the important indicators that is the result of dividing the amount of damages paid by the production insurance premium. This index shows how many percentages of insurance premiums have been or will be returned to insurers for the damage of covered risks.

According to the Central Insurance report, the loss ratio reached 44.8% at the end of July 1402 and witnessed a growth of 5.4% compared to the same period last year. This is while the fields of credit insurance with a loss ratio of 168%, car body insurance with 73.57%, third index with 50% and treatment with 46.65% were the fields that had a higher loss ratio than the total average.