(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 2. Iran's insurance sector should move towards embracing digital transformation, Minister of Economic Affairs and Finance Ali Madanizadeh said at the 32nd International Insurance and Development Conference held in Tehran today, Trend reports.

According to him, digital economic development is now an inevitable necessity. Countries that lagged behind in development in the past have now made large investments in the digital sector. If Iran cannot apply modern technologies, it will definitely lag behind the world this time.

Madanizadeh articulated that the ingress into the digital domain engenders a plethora of lucrative prospects for Iran. Capital allocations ought to be strategically directed towards this paradigm, and it is imperative to transition towards a digitized economic framework.

The minister also said that when it comes to the scope and penetration of insurance, the scope and penetration of insurance in the world is 7.4% of the gross domestic product (GDP), more than 10% in developed countries, 2-4% in developing countries, and 2.4% in Iran.

Madanizadeh noted that this figure is very low for Iran, and the gap between developed countries and Iran will increase further. International studies have shown that economic development is effective in every percentage of insurance penetration and coverage.

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