Saman Insurance company, affiliated to Saman Bank, says it will soon offer new packages exclusively for Iranian firms doing business with Iraq.
Company officials met members of the Iran-Iraq Joint Chamber of Commerce, managers of the Export Development Fund officials and the head of Iran's Commercial Center in Iraq and reviewed challenges and risks Iranian businesses face in the neighboring Arab country.
According to Saman Insurance public relations department, it agreed to take necessary measures to address the risks by offering packages exclusively designed for trade with Iraq.
In 2020 Saman extended its frontier by launching a subsidiary insurance company in Baghdad. Two branches in Baghdad and the shrine city of Karbala were already offering services before.
Iranian companies are active in the Iraqi market. Twenty-five percent of the import market in Iraq is reportedly held by Iranian firms. However, lack of proper insurance cover has resulted in big risks for the Iranians.
Kalleh Company, a major dairy, food and beverage company, was once one of the largest Iranian players in that country. Nearly 90% of Kalleh's plant in Karbala was destroyed by fire in 2019. The fire caused over $80 million in damage to the food company whose officials said the factory was not insured. It was not known why.
By entering the Iraqi market, 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 to Iranians visiting Iraq. The Arab country is a major destination for Iranian pilgrims who account for 20% of Iran's outbound tourism.
Saman is also covering investment risks in the neighboring country.
Iran’s exports to Iraq reached 28 million tons worth $8.22 billion in the first 11 months of the current fiscal year (March 21-Feb. 19) -- 17% and 20% y/y growth in terms of weight and value, respectively, according to the Islamic Republic of Iran Customs Administration.
Exports to Iraq accounted for 25% of the volume and 19% of the value of Iran’s total export, which stood at 112.66 million tons worth $43.5 billion during the period.
Exports included seafood, livestock, dairy, farm products, industrial machinery, minerals and construction materials.
