Bimeh Markazi Iran (Central Insurance of I.R. Iran) was founded in 1971 (1350) by the Act of Iranian Parliament for the purpose of regulating, expanding, guiding insurance operations in Iran, and for the guidance of the insurance companies, along with the protection of the insured and their beneficiaries as well as to ensure government supervision of such operations. Parallel with regulatory and supervisory missions, Bimeh Markazi Iran has been entrusted to accomplish local compulsory reinsurance and to conduct inward and outward reinsurance business in both national and international markets, consistent with its Establishment Act. It will continue to operate the following missions;
- To prepare by-laws and regulations, to issue directives deemed necessary for the promotion and proper execution of insurance operation in Iran, with due regard to the text of this law
- To compile necessary information on the performance of all insurance organizations operating in Iran
- To effect compulsory reinsurance operation
- To effect facultative reinsurance from Iranian and foreign insurance organizations
- To cede reinsurance to Iranian and foreign related companies whenever deemed necessary
- To administer the Bodily Injury Indemnity Fund (BIIF), to prepare by-laws relating to the Fund, specified in Article 10 of law on Compulsory Third Party Liability by Owners of Land Motor Vehicles under the Civil Law, approved in January 1968 (Day 1347)
- To guide, lead, and supervise insurance companies, to afford protection to such companies in view of ensuring sound insurance market, to regulate matters relating to agencies and brokers, to supervise reinsurance matters to prevent unfair, deceitful and unsound competition, to regulate and supervise insurance industry.
Under the Iranian compulsory reinsurance regulations, all insurance companies operating in Iran are obliged to cede certain percentage of their direct life and non-life business to Bimeh Markazi.
Also, if and when, insurance companies intend to acquire reinsurance coverage from abroad they must offer certain percentage of each reinsurance contract to Bimeh Markazi Iran under the same terms and conditions. Bimeh Markazi Iran endeavors to use local reinsurance capacity by retroceding all or part of compulsory reinsurance to local insurance companies according to their capacity, after which contribution from international markets is welcomed.
To summarize, Bimeh Markazi Iran plays a key role in insurance industry by promoting, regulating, and supervising insurance activities within the market while providing national and international reinsurance services.