Saman Insurance Company has extended its frontier by launching a subsidiary insurance company in Iraq.
According to a press release published on the company's website, the insurer aims to help promote trade between the two neighbors by offering incentives to exporters and businesses in Iraq.
It also has plans to provide insurance cover o Iranians visiting Iraq. The Arab country is a major destination for Iranian pilgrims who account for 20% of Iran's outbound tourism.
The headquarters of Saman Iraq Insurance Company is in Baghdad. Two branches in Baghdad and the shrine city of Karbala are offering services for now. The company says it has plans to open offices in Basra, Najaf, Sulaymaniyah and Arbil.
Iranian companies are active in the Iraqi market. Twenty-five percent of the import market in Iraq is reportedly held by Iran. Iranian goods make up $10 billion of the total $40 billion of Iraqi imports per annum.
However, lack of proper insurance cover has caused huge risks for Iran’s companies dealing with Iraqis. Kalleh Company, a major dairy, food and beverage company, was once one of the largest Iranian players in that country.
Nearly 90% of the Kalleh's plant in Karbala was destroyed by fire last year. The fire caused over $80 million in damage to the company whose officials then said the factory had no insurance.
Iranian insurers have long expressed interest in entering Iraq. For years the state-owned Iran Insurance Company was the only firm with nine foreign branches.
Saman Insurance, affiliated to Bank Saman, established a reinsurance company recently, becoming the third of its kind in the domestic market.
