Maximum Death Insurance Amount in Iran Set at 500 Million Tomans

Iranian news agencies have reported that according to a directive from Abdolreza Hemmati, the head of the Central Insurance of Iran, from the beginning of the year 1397 (2018), the maximum insurance amount for death risk in one or more individual life insurance policies issued by one or more insurance companies for a policyholder is set at five billion rials. The official website of the Central Insurance has not yet published a report on this matter, but Iranian media, including ISNA news agency, have published the text of Mr. Hemmati's directive. The Judiciary news website has also released a video file of the directive. In 1395 (2016), the death insurance ceiling was doubled to 400 million tomans and had remained fixed until now. According to the official report from the Central Insurance website, Mr. Hemmati had called for specialization and improvement in the life insurance sector last Esfand (March) of the previous year. He stated, 'High bank interest rates have led not only the public but also insurance companies to deposit their capital in banks, and currently about 55% of the insurance industry's resources are in banks, which is a serious problem and requires high-level brainstorming.' According to official statistics from the Central Insurance Company published on its website, one of the periods of rapid growth in life insurance has occurred since 1392 (2013), during which the share of life insurance from the total market has increased from 7.8% in 1391 (2012) to the current 13.4%. The report indicates that in 1390 (2011), only 16% of insurance representatives were active in the life insurance sector, but by 1396 (2017), the share of life insurance representatives increased by about 25%, with 5 units of this increase related to 1395 and 1396. Last Dey (December) Mr. Hemmati announced that currently about 14 million and 200 thousand people have life insurance. He mentioned that many who purchase life insurance increase their premiums in subsequent years to benefit from more facilities and advantages, and this phenomenon is currently a growing factor for life insurance growth. According to information from the official website of Iran Insurance Company, the minimum monthly premium received from the insured person is 50,000 tomans. Mr. Hemmati states that currently only 18% of the Iranian population has life insurance, and the share of life insurance in the country's insurance industry is 13.4%. 'This ratio in the world is 55 to 60% and around Iran is about 25%, which indicates a high potential for the growth of life insurance.'