Page 51 - IRANRptSep21

9.1.7 Healthcare sector news
Iranian insurers call for government help as coronavirus payout pressure mounts
The Iranian Insurers’ Organisation—an industry lobby group—has requested financial support from Iran’s government as it contends with the country’s growing death toll from the coronavirus (COVID-19) pandemic, according to Donyaye Eqtesad.
Insurance companies, call centres and secondary agents in offices around the country suspended much of their work given closure notices issued by the government as the outbreak worsened, but following their return to operation they have found themselves buckling under the weight of applications and payouts.
Some 400,000 people are employed in the insurance sector in Iran, a country of 83mn. The industry is now facing a perfect storm of policy auto-renewals together with payouts, despite not being able to raise the base prices of policies.
The medical and life insurance segments have reportedly taken the biggest hits in recent days, with huge payouts becoming due.
Also, unemployment benefit, which is backed by insurance, has skyrocketed in recent weeks, with some 600,000 people officially laid off as a consequence of the economic effects of the pandemic in Iran. Earlier, as part of preparations to deal with the outbreak, insurance companies were told by Central Insurance of Iran to recapitalise and meet new minimum liquidity rules ahead of the impending payout surge.
The government in 2017 set IRR2.5 trillion ($65.18mn at the official exchange rate) as the minimum capital requirement for starting a reinsurance firm and IRR1tn as the requirement for starting an insurance firm.
9.1.8 Agricultural sector news
Iran’s feed industry ‘driven into crisis that threatens country with food shortages’
Western sanctions, currency depreciation and drought have driven the Iranian feed industry to an unprecedented crisis, threatening the country with food shortages in the next few months, writes All About Feed.
The trade publication points out that the Iranian government keeps adhering to its price-constraining policy on the domestic livestock market, with the policy including purchasing chicken from all farmers at fixed prices and distributing feedstuff among farmers and feed mills at guaranteed prices. The second part of this policy is said to have not functioned well recently.
Mojtaba Aali, CEO of the National Union of Livestock Breeders, is cited as saying: “The feedstuff either does not reach farmers or reach farmers too late, forcing them to source feedstuff on the open market. When farmers begin buying grain on the open market, their costs skyrocket.” Numerous farmers hae reportedly declared bankruptcy, with many others culling their animals, not willing to suffer losses, according to local reports.
“This [policy] has led to the mass culling of livestock and rising meat supply in the market, but if this trend continues, we expect to see a severe shortage of livestock in the country in the next three to six months, and the market will undoubtedly become inflamed,” Aali was further reported as saying.
The Iranian Ministry of Agricultural Jihad is also under fire from farmers for rushing to protect consumers in a way that causes a lot of harm to agricultural businesses.
“If the government wants to continue to buy chicken at the same price, it must deliver feedstuff on time and cheaper to poultry farmers so that we do not see the bankruptcy of producers,” said Habib Asada Nejad, a local farmer,
51 IRAN Country Report September 2021 www.intellinews.com