Economy, Business And Markets

Insurance Industry Awaits Better Times

Insurance Industry Awaits Better Times
Insurance Industry Awaits Better Times

The Central Insurance Company of Iran has put in place a comprehensive plan for the insurance industry in the post-sanctions era, the company’s deputy director for reinsurance said Tuesday.

Mina Seddiq Nouhi referred to the economy minister’s recent comments to reinvent the reinsurance industry and make it profitable, and said, “The industry should not always rely on foreigners… It would do better to interact with  foreign insurance brokers to export insurance and reinsurance services.”

Addressing an Iranian Insurance Syndicate meeting, she spoke abound CII’s short, long and medium-term schemes for a post sanction era but did not elaborate, the syndicate’s official website reported.

“Sanctions imposed tough restrictions on the Iranian insurance and reinsurance industry, caused problems for reinsurance affairs, marine insurance and technological advancement in the sector. However the (foreign) restrictions enhanced ties between domestic insurers,” she said.

Nouhi also talked about CII’s recent proposal to the government on establishing a “national reinsurance fund” saying that the Central Insurance had trusted insurers, and opened a reinsurance account to cushion the risks.  

“The account not only helped save the industry during the sanctions, but now after five years it also has turned into a source of profit for the companies.”

Participants also agreed that any attempt for retrieving the debts of foreign companies should be under CII supervision.

Half of Ian’s total frozen assets in European insurance firms belong to the ICIC ($10 million) while the rest is owned by insurance companies, CII data indicate.

She considered an earthquake in Tehran to carry the highest risk for the insurers and said €1 billion reinsurance coverage has been bought to support the companies if and when disaster strikes.