EghtesadOnline: Premium rates on travel insurance have increased by as much as 25% on the back of a recent slide in rial’s value against the dollar.
While the insurance industry receives dollar at the rate of 42,000 rials, the premiums on various travel insurance policies have increased by 20-25%, IBENA said in a report on Monday. It was referring to an exchange rate the government declared by unifying the open and official market rates in early April, among other measures to rein in a currency crisis. The rise in dollar’s exchange rate from 37,000 to 42,000 rials has affected travel insurance prices that need to be paid in dollars or euros, the report added. Engineering and machinery insurance markets are also expected to witness a gradual rise in premium, according to Financial Tribune.