News: Ali Tayyebnia, Iran's minister of economic affairs and finance, is seeking to develop more varied insurance services to address the domestic requirements of the country, reports Fars News Agency. This comes after Tayyebnia expressed his dissatisfaction with the country's national insurance penetration rate of 1.8%, compared with 7% in developed countries in the week ended January 25. Tayyebnia also believes that the domestic insurance industry lacks diversity in services provided and continues to face challenges on the supply side.
BMI View: While fiscal and monetary policy sustains high inflation and elevated inflation expectations, life insurance in Iran will remain at an embryonic stage of development. The non-life insurance segment has undoubtedly been growing. However, the expansion has been of 'low quality' given the distortion of prices, revenues and costs by the structurally high level of inflation.