Iran’s insurance market sustained by mandatory motor coverage

Desk report: Iran’s insurance sector continues to operate under tight regulatory oversight and international sanctions, with the Central Insurance of Iran (Bimeh Markazi) supervising the market. Despite economic constraints, the industry has maintained steady activity, largely supported by compulsory insurance lines.

Motor third-party liability (TPL) insurance, which is mandatory for all vehicles, remains a central pillar of the market and historically accounts for a substantial share of total premiums. Other major products include property and fire insurance, liability coverage, marine and engineering insurance, as well as life and supplementary health policies, both of which have seen growing demand in recent years.

Claims activity is dominated by motor accidents, reflecting the mandatory nature of TPL coverage and high road-traffic volumes. Natural disasters such as earthquakes and floods also contribute to property claims, while rising healthcare costs continue to drive health insurance payouts.

Insurance contracts in Iran operate under the country’s civil and insurance laws, which require policyholders to disclose material risk information. Standard exclusions typically include losses arising from war, intentional acts and undeclared risks.

The market remains largely domestically controlled, with limited foreign participation and significant state influence shaping regulation and pricing structures.