Economy, Business And Markets

3 Foreign Insurance Firms Approved

3 Foreign Insurance  Firms Approved
3 Foreign Insurance  Firms Approved

Three British, French and Swiss insurance companies have obtained the Central Insurance of Iran's approval for opening representative offices in Iran, according to a senior insurance official.

Rahim Mosadeq, CII's deputy for planning and development, said the Central Insurance company welcomes foreign investment and that the foreign insurers' presence would help improve competition and efficiency in the insurance market, leading to customer satisfaction, Risknew website quoted him as saying.

He referred to Article 44 of the Constitution which allows foreign insurance companies to operate in the country through their branches and representation offices.

The official touched upon the possibility of foreign individual investment in the insurance industry saying individuals are allowed to purchase domestic insurance companies' shares up to 20% - under CII supervision. Buying shares above this limit - up to 49% - is subject to government's permission.

"No ceiling is designated for purchasing shares in the free trade zones and foreigners can have 100% stake in insurance companies in these areas," he added.

Mosadeq also pointed to Iranian insurance companies' active presence in neighboring countries, namely Iraq, Afghanistan, Bahrain and UAE, and said, "Domestic insurers' operations should be in accordance with the law of the host country."

Caption: Foreigners can invest in the Iranian insurance market.