Business And Markets

Banking-Insurance Pact Signed

Banking-Insurance Pact Signed
Banking-Insurance Pact Signed

A memorandum of understanding has been signed between Iran Insurance Company and Bank Keshavarzi (Bank of Agriculture) for expansion of financial interactions.

Deputy CEO of Iran Insurance Co. stated the MoU is aimed at helping both parties to optimize their capacities in order to offer more effective services to their customers, IRNA reported.

Khosro Haghighi added that Iran insurance company seeks to boost collaboration with domestic banks as its strategic partners. Iran Insurance Co. ranks 17 among the country’s 500 leading companies with a total insurance sales record of $170 million (4,500 billion rials). The company says its coverage accounts for 50% of the national insurance market.

Meanwhile, Iraj Yousefi, who is the deputy chief of Bank Keshavarzi for Tehran Province and Free Trade Zones, said the agreement provides the bank with the ability to perform all transactions with Iran Insurance Company electronically and through ACH or Automated Clearing House (PAYA system in Iran).

Since Bank Keshavarzi is the only Iranian bank with branches in rural areas, the agreement will improve the services offered by the two sides to their clients in those areas, Yousefi added.

“The regulations for state-owned banks do not authorize Bank Keshavarzi to establish an insurance company of its own. Similarly, Iran Insurance Co. is itself a state company and therefore it is not allowed to officially perform banking operations. Therefore, an agreement like this enables both sides to cover the services they are unable to offer legally on their own,” Yousefi concluded.

Bank Keshavarzi is Iran’s third largest bank with 1,918 branches across the country.