Marktanalyse - Reinsurance in Iran, Key Trends and Opportunities to 2016

Synopsis
The report provides in depth market analysis, information and insights into the Iranian reinsurance market, including:
• The Iranian reinsurance market’s growth prospects by reinsurance categories
• The Iranian reinsurance market’s growth prospects by reinsurance ceded from direct insurance segments
• The competitive landscape in the Iranian reinsurance insurance market

Summary
During the review period, the Iranian reinsurance segment was dominated by Bimeh Markazi Iran (Central Insurance of Iran), the single state-regulated reinsurer which was established to regulate, expand and guide the overall insurance industry. Furthermore, the regulatory framework of the country, which made compulsory cession of the life, non-life and personal accident and health insurance segments, drove the growth of the reinsurance segment during the review period. Moreover, the growth of all three of the segments is expected to advance the growth of reinsurance over the forecast period.

Scope
This report provides a comprehensive analysis of the reinsurance market in Iran:
• It provides historical values for the Iranian reinsurance market for the review period (2007—2011) and forecast period (2012—2016)
• It offers a detailed analysis of the key sub-segments in the Iranian reinsurance market, along with market forecasts until 2016
• It provides a detailed analysis of the reinsurance ceded from various direct insurance markets in Iran and its growth prospects
• It profiles the top reinsurance companies in Iran

Reasons To Buy
• Make strategic business decisions using in depth historic and forecast market data related to the Iranian reinsurance market and each sector within it
• Understand the demand-side dynamics, key market trends and growth opportunities within the Iranian reinsurance market
• Assess the competitive dynamics in the reinsurance market
• Identify the growth opportunities and market dynamics within key product categories
• Gain insights into key regulations governing the Iranian insurance market and its impact on companies and the market's future

Key Highlights
• Iran is situated in a high natural disaster-prone location. The country is prone to earthquakes with the occurrence of two earthquakes in 2010 and one in 2011.
• Iran’s position in a high disaster risk region influenced the reinsurance segment as it increased consumer awareness towards insurance policies such as property and motor insurance.
• The key growth driver of the reinsurance business over the forecast period will be the strict regulations for minimum capital requirements and legal cession on all companies operating in Iran.
• As of 2011, the Iranian reinsurance segment is dominated by the Amin Reinsurance Company (Amin Re) which accounted for the largest market share in the segment.


Press Release:

Iranian Reinsurance Feature Article

The Iranian reinsurance segment increased significantly at a CAGR of 22.3% during the review period. Despite the global economic crisis, the segment registered an annual growth of 19% in 2009. During the review period, the Iranian reinsurance segment was dominated by Bimeh Markazi Iran (Central Insurance of Iran), the single state-regulated reinsurer which was established to regulate, expand and guide the overall insurance industry. Furthermore, the regulatory framework of the country, which made compulsory cession of the life, non-life and personal accident and health insurance segments, drove the growth of the reinsurance segment during the review period. Moreover, the growth of all three of the segments is expected to advance the growth of reinsurance over the forecast period.

Regulatory norms will drive the growth of Iranian reinsurance

The Iranian reinsurance market is driven by Article 70 of the Law as established by Bimeh Markazi Iran, which forced insurance companies to cede a minimum percentage of their premium as legal cession. The Iranian insurance law ensures that all insurance companies operating in Iran have to cede 25% of the total policies in the case of the non-life segment, and 50% in the life insurance segment, to Bimeh Markazi, Central Insurance of Iran. If Bimeh Markazi refrains from accepting, the insurer is free to undertake reinsurance outside of Iran.

Risk of natural disaster increases the Iranian reinsurance demand

Iran is situated in a high natural disaster-prone location. The country is prone to earthquakes with the occurrence of two earthquakes in 2010 and one in 2011. Iran’s position in the high disaster risk region influenced the reinsurance segment as it increased the consumer awareness towards insurance policies such as property and motor insurance. According to the Natural Disasters Risk Index of Maplecroft, Iran stands at number three in terms of natural disaster risks. The occurrence of earthquakes in 2010 increased the reinsurance market by 29% in 2011, in terms of gross written premium.

Growth of insurance segments will drive the reinsurance industry

The Iranian insurance industry grew from IRR28.65 trillion in 2007 (US$3.2 billion) to IRR63.09 trillion (US$6 billion) in 2011, registering a CAGR of 21.8% during the review period. The non-life insurance segment accounted for 69.3%, followed by the personal accident and health insurance segment with 23.3% and the life insurance market with 7.4% of the total insurance market. The personal accident and health insurance segment registered the highest growth rate and grew at a CAGR of 40.5% during the review period. The significant growth registered by the non-life and personal accident and health insurance segments is expected to generate growth for the reinsurance industry. Furthermore, this growth is expected to drive the Iranian reinsurance market over the forecast period.

Table of Contents

1 Executive Summary

2 Introduction

2.1 What is this Report About?

2.2 Definitions

2.3 Methodology

3 Iranian Insurance Industry Attractiveness

3.1 Insurance Industry

3.2 Reinsurance Growth Dynamics and Challenges

3.2.1 Reinsurance market size, 2007—2016

3.2.2 Reinsurance market size by insurance segment, 2007—2016

4 Key Industry Trends and Drivers

4.1 Fundamental Business Drivers

4.2 Life Insurance Growth Drivers

4.3 Non-Life Insurance Growth Drivers

4.4 Personal Accident and Health Insurance Growth Drivers

5 Competitive Landscape and Strategic Insights

5.1 Overview

5.2 Leading Companies in the Iranian Reinsurance Segment

5.3 Amin Re — Company Overview

5.3.1 Amin Re — key facts

5.3.2 Amin Re — main products

5.3.3 Amin Re — main competitors

5.3.4 Amin Re — Key employees

6 Business Environment and Country Risk

6.1 Business Confidence

6.1.1 Market capitalization trend — Tehran Stock Exchange, Iran

6.2 Economic Performance

6.2.1 GDP at constant prices (US dollar)

6.2.2 GDP per capita at constant prices (US dollar)

6.2.3 GDP at current prices (US dollar)

6.2.4 GDP per capita at current prices (US dollar)

6.2.5 GDP by key segments

6.2.6 Agricultural net output at current prices (IRR)

6.2.7 Agricultural net output at current prices (US dollar)

6.2.8 Agricultural net output at current prices as a percentage of GDP

6.2.9 Manufacturing net output at current prices (IRR)

6.2.10 Manufacturing net output at current prices (US dollar)

6.2.11 Manufacturing net output at current prices as a percentage of GDP

6.2.12 Mining, manufacturing and utilities net output at current prices (IRR)

6.2.13 Mining, manufacturing and utilities at current prices (US dollar)

6.2.14 Mining, manufacturing and utilities at current prices, as percentage of GDP

6.2.15 Construction net output at current prices (IRR)

6.2.16 Construction net output at current prices, (US dollar)

6.2.17 Construction net output at current prices as a percentage of GDP

6.2.18 Inflation rate

6.2.19 Current account balance as a percentage of GDP

6.2.20 Exports as a percentage of GDP

6.2.21 Imports as a percentage of GDP

6.2.22 Exports growth

6.2.23 Imports growth

6.2.24 Annual average exchange rate US$—IRR

6.2.25 End-of-period exchange rate US$—IRR

6.3 Infrastructure Quality and Availability

6.3.1 Total airports and sea ports

6.3.2 Railways and roadways

6.3.3 Passenger vehicle production volume

6.3.4 Commercial vehicle production volume

6.3.5 Automotive component exports trend

6.3.6 Automotive component imports trend

6.3.7 Passenger car penetration

6.3.8 Healthcare expenditure

6.3.9 Healthcare expenditure as a percentage of GDP

6.3.10 Healthcare expenditure per capita

6.3.11 Total internet subscribers

6.4 Labor Force

6.4.1 Labor force

6.4.2 Unemployment rate

6.5 Demographics

6.5.1 Annual disposable income

6.5.2 Annual per capita disposable income

6.5.3 Total population

6.5.4 Urban and rural population

6.5.5 Female percentage of population

6.5.6 Male percentage of population

6.5.7 Mean age of the population

6.5.8 Median age of population

6.5.9 Population density

6.5.10 Age distribution of the total population

6.5.11 Age distribution of the male population

6.5.12 Age distribution of the female population

6.5.13 Number of households

6.6 Political and Social Risk

6.6.1 Political stability

6.6.2 Terrorism index

6.6.3 Transparency index

7 Appendix

7.1 Methodology

7.2 Contact us

7.3 About Timetric

7.4 Disclaimer



List of Tables

Table 1: Insurance Industry Definitions

Table 2: Iranian Insurance Overall Written Premium by Segment (IRR Billion), 2007—2011

Table 3: Iranian Insurance Overall Written Premium by Segment (US$ Billion), 2007—2011

Table 4: Iranian Insurance Overall Written Premium by Segment (IRR Billion), 2011—2016

Table 5: Iranian Insurance Overall Written Premium by Segment (US$ Billion), 2011—2016

Table 6: Iranian Insurance Segmentation (% Share), 2007—2016

Table 7: Iranian Reinsurance Market Size by Category (IRR Billion), 2007—2011

Table 8: Iranian Reinsurance Market Size by Category (US$ Billion), 2007—2011

Table 9: Iranian Reinsurance Market Size by Category (IRR Billion), 2011—2016

Table 10: Iranian Reinsurance Market Size by Category (US$ Billion), 2011—2016

Table 11: Iranian Reinsurance Premium Ceded by Segment (IRR Billion), 2007—2011

Table 12: Iranian Reinsurance Premium Ceded by Segment (US$ Billion), 2007—2011

Table 13: Iranian Reinsurance Premium Ceded by Segment (IRR Billion), 2011—2016

Table 14: Iranian Reinsurance Premium Ceded by Segment (US$ Billion), 2011—2016

Table 15: Iranian Life Insurance — Percentage of Reinsurance Ceded (%), 2007—2011

Table 16: Iranian Life Insurance — Percentage of Reinsurance Ceded (%), 2011—2016

Table 17: Iranian Non-Life Insurance — Percentage of Reinsurance Ceded (%), 2007—2011

Table 18: Iranian Non-Life Insurance — Percentage of Reinsurance Ceded (%), 2011—2016

Table 19: Iranian Personal Accident and Health Insurance — Percentage of Reinsurance Ceded (%), 2007—2011

Table 20: Iranian Personal Accident and Health Insurance — Percentage of Reinsurance Ceded (%), 2011—2016

Table 21: Iranian Leading Reinsurance Companies, 2011

Table 22: Amin Re, Key Facts

Table 23: Amin Re, Main Products

Table 24: Amin Re, Key Employees



List of Figures

Figure 1: Iranian Insurance Overall Written Premium by Segment (IRR Billion), 2007—2016

Figure 2: Iranian Insurance Market Dynamics by Segment, 2007—2016

Figure 3: Iranian Reinsurance Market Size by Category (IRR Billion), 2007—2016

Figure 4: Iranian Reinsurance Market Size by Category (% Share), 2011 and 2016

Figure 5: Iranian Reinsurance Market Dynamics by Category, 2007—2016

Figure 6: Iranian Reinsurance Premium Ceded by Segment (IRR Billion), 2007—2016

Figure 7: Iranian Reinsurance Market Dynamics by Segment, 2007—2016

Figure 8: Iranian Life Insurance — Percentage of Reinsurance Ceded (%), 2007—2011

Figure 9: Iranian Life Insurance — Percentage of Reinsurance Ceded (%), 2011—2016

Figure 10: Iranian Non-Life Insurance — Percentage of Reinsurance Ceded (%), 2007—2011

Figure 11: Iranian Non-Life Insurance — Percentage of Reinsurance Ceded (%), 2011—2016

Figure 12: Iranian Personal Accident and Health Insurance — Percentage of Reinsurance Ceded (%), 2007—2011

Figure 13: Iranian Personal Accident and Health Insurance — Percentage of Reinsurance Ceded (%), 2011—2016

Figure 14: Tehran Stock Exchange Market Capitalization (US$ Billion), 2007—2011

Figure 15: Iranian GDP at Constant Prices (US$ Billion), 2007—2011

Figure 16: Iranian GDP Per Capita at Constant Prices (US$), 2007—2011

Figure 17: Iranian GDP at Current Prices (US$ Billion), 2007—2011

Figure 18: Iranian GDP Per Capita at Current Prices (US$), 2007—2011

Figure 19: Iranian GDP by Key Segments (%) 2009 and 2011

Figure 20: Iranian Agricultural Net Output at Current Prices (IRR Billion), 2007—2011

Figure 21: Iranian Agricultural Net Output at Current Prices (US$ Billion), 2007—2011

Figure 22: Iranian Agricultural Net Output at Current Prices as a Percentage of GDP (%), 2007—2011

Figure 23: Iranian Manufacturing Net Output at Current Prices (IRR Billion), 2007—2011

Figure 24: Iranian Manufacturing Net Output at Current Prices (US$ Billion), 2007—2011

Figure 25: Iranian Manufacturing Net Output at Current Prices as a Percentage of GDP (%), 2007—2011

Figure 26: Iranian Mining, Manufacturing and Utilities Net Output at Current Prices (IRR Billion), 2007—2011

Figure 27: Iranian Mining, Manufacturing and Utilities Net Output at Current Prices (US$ Billion), 2007—2011

Figure 28: Iranian Mining, Manufacturing and Utilities Net Output at Current Prices as a Percentage of GDP (%), 2007—2011

Figure 29: Iranian Construction Net Output at Current Prices (IRR Billion), 2007—2011

Figure 30: Iranian Construction Net Output at Current Prices (US$ Billion), 2007— 2011

Figure 31: Iranian Construction Output at Current Prices as a Percentage of GDP (%), 2007—2011

Figure 32: Iranian Inflation Rate (%), 2007—2011

Figure 33: Iranian Current Account Balance as a Percentage of GDP(%), 2007—2011

Figure 34: Iranian Exports as a Percentage of GDP (%), 2007—2011

Figure 35: Iranian Imports as a Percentage of GDP (%), 2007—2011

Figure 36: Iranian Exports Growth (%), 2007—2011

Figure 37: Iranian Imports Growth (%), 2007—2011

Figure 38: Iranian Annual Average Exchange Rate US$—IRR, 2007—2011

Figure 39: Iranian End-of-Period Exchange Rate US$—IRR, 2007—2011

Figure 40: Iranian Airports and Sea Ports (Number), 2011

Figure 41: Iranian Railways and Roadways (Kilometers), 2011

Figure 42: Iranian Passenger Vehicle Production, 2007—2011

Figure 43: Iranian Commercial Vehicle Production, 2007—2011

Figure 44: Iranian Automotive Component Exports (US$ Billion), 2007—2011

Figure 45: Iranian Automotive Component Imports (US$ Billion), 2007—2011

Figure 46: Iranian Passenger Car Penetration (per thousand people), 2007—2011

Figure 47: Iranian Healthcare Expenditure (US$ Billion), 2007—2011

Figure 48: Iranian Healthcare Expenditure as a Percentage of GDP (%), 2007—2011

Figure 49: Iranian Per Capita Healthcare Expenditure (US$), 2007—2011

Figure 50: Iranian Internet Subscriptions (Million), 2007—2011

Figure 51: Iranian Size of Labor Force in 15—59 Age Group (Million), 2007—2011

Figure 52: Iranian Unemployment Rate (%), 2007—2011

Figure 53: Iranian Annual Disposable Income (US$ Billion), 2007—2011

Figure 54: Iranian Annual Per Capita Disposable Income (US$), 2007—2011

Figure 55: Iranian Total Population (Million), 2007—2011

Figure 56: Iranian Urban and Rural Population (%), 2007—2011

Figure 57: Iranian Female Percentage of Population (%), 2007—2011

Figure 58: Iranian Male Percentage of Population (%), 2007—2011

Figure 59: Iranian Mean Age of Population (Years), 2007—2011

Figure 60: Iranian Median Age of Population (Years), 2007—2011

Figure 61: Iranian Population Density (per Square Kilometer), 2007—2011

Figure 62: Iranian Population Distribution by Age (%), 2007—2011

Figure 63: Iranian Male Population Distribution by Age (%), 2007—2011

Figure 64: Iranian Female Population Distribution by Age (%), 2007—2011

Figure 65: Iranian Households, Number of (Million), 2007—2011

Figure 66: Global Terrorism Heat Map, 2011

Figure 67: Iranian Transparency Index, 2007—2011

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