Insurers Welcome Risk Securitization

The Central Insurance company of Iran, the industry’s regulator, has welcomed the government's action plan to create the conditions for offering insurance risk securities, saying that it would turnaround the key sector.
"Insurance companies are cementing their ties with the stock market. If the new measure is approved by the parliament, insurance policies could be traded in the market," Gholamreza Soleimani was quoted as saying by Shada, the Economy Ministry's official news outlet.
Insurance securitization may be defined as the transfer of underwriting risks to the capital markets through the creation and issuance of financial securities. Rather than an insurer transferring its underwriting risk to a reinsurer within the insurance industry, the risk is transferred to the broader capital markets.