The share of private companies in the insurance market reached 75% this year

Majid Behzadpour, in an interview with Iran Economist, answered the question about the share of non-governmental insurance companies in the reinsurance market and whether the government is going to reduce its share. And about 90% of the reinsurance market is in the hands of the government and central insurance, but we have created a structure that private companies will gradually take more market share.

He added: This year, two reinsurance companies have received operating licenses, one is Iran Moin, which became a reinsurance company, and we are building capacity in the reinsurance market, and the presence of the government is gradually fading.

The head of Central Insurance said: In compulsory reinsurance, we increased the government’s share from 20% to 17%, and in life and non-life insurance, the government’s share decreased from 10% to 9%.

Behzadpour said about the share of non-governmental companies in commercial insurances: the performance of 9 months of this year shows that the share of non-governmental insurance companies in the sales of the insurance industry’s portfolio reached 75% and this share is gradually increasing.

In response to the question of whether new insurance companies are going to enter the capital market, he emphasized: Our view is that the way of doing business in the country is moving towards the private sector and the industries that have been privatized are successful in the insurance industry. They appear in the stock market, they find a more transparent performance, and we encourage companies to enter the capital market so that they can attract funds from people and new shareholders. On the other hand, stock exchange insurance companies can provide better services to customers and people with the supervisory mechanisms of the stock exchange organization, and most insurance companies are moving towards stock exchange.

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