Azerbaijan, Baku, Dec. 3 / Trend A.Yusifzade /
Iran will eliminate fixed rates on insurance services by late this year to create a competitive market in the insurance sector, head of the Novin insurance company Gholamali Gholami was quoted as saying by the Irna news agency today. The Iranian new year begins in March.
"Today, the Iranian Insurance Center removed fixed rates on certain insurance services, and it will be completely eliminated on the remaining services by late this year," Gholami said.
According to the company head, the rates on insurance services should be customer-oriented.
"Companies that can reduce their costs and establish lower tariffs will be successful," he said.
Gholami added that today the share of insurance in the Iranian GDP is negligible compared to the existing capacity and amounts to 1.3 percent, while taking into account insurance premiums to the social insurance fund (2.3 percent), whereas in some developing countries this figure reaches 10 percent and the number hits roughly 30 percent in developed economies.
There are 21 public and private insurance companies with 20,000 branches in Iran.
Last year, these branches issued 30 million policies, Gholami said.