Insurances

The Insurances market in Iran is expected to reach a projected market size (gross written premium) of US$6.10bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$3.57bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$67.95 in 2024.
When comparing globally, it is observed that the United States has the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is expected to grow annually at a rate of 4.18% (CAGR 2024-2029), resulting in a market volume of US$7.49bn by 2029.
In the global comparison, the United States will generate the most gross written premium, amounting to US$3.8tn in 2024.
The insurance market in Iran is experiencing steady growth due to increasing awareness about the importance of risk management.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

Iran's insurance market is experiencing significant growth and development.

Customer preferences: Customers in Iran are increasingly seeking insurance products that provide comprehensive coverage and financial security for their families and businesses. There is a growing demand for life insurance, health insurance, and property insurance as individuals and businesses look to mitigate risks and protect their assets.

Trends in the market: One of the key trends in the Iranian insurance market is the increasing adoption of digital technologies. Insurers are leveraging online platforms and mobile apps to reach a wider customer base and streamline the insurance purchasing process. Additionally, there is a growing trend towards customized insurance products tailored to the specific needs of different customer segments.

Local special circumstances: Iran's insurance market is unique due to its regulatory environment and government involvement. The market is dominated by state-owned insurance companies, which play a significant role in providing insurance coverage to the population. Additionally, sanctions and geopolitical factors have influenced the market dynamics, leading to a focus on domestic insurance solutions.

Underlying macroeconomic factors: The development of Iran's insurance market is also influenced by macroeconomic factors such as economic growth, inflation rates, and regulatory reforms. As the economy continues to grow and diversify, there is a corresponding increase in the demand for insurance products to protect against various risks. Additionally, regulatory changes aimed at enhancing transparency and consumer protection are shaping the competitive landscape of the insurance industry in Iran.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.