Economy, Business And Markets

Foreign Insurer Sees Immense Opportunity

Foreign Insurer Sees Immense Opportunity Foreign Insurer Sees Immense Opportunity

Head of Treaty London and head of Iran for Matrix Insurance which has recently opened an office in Tehran says Iran represents a great opportunity in the insurance market.  

"With about 200,000 billion plus Iranian rials of annual insurance premiums (about $7 billion) and loss ratios which are excellent across the majority of classes, interest from markets previously blocked by sanctions is understandably high," quoted Robert Easton as saying.

 "With global reinsurance rates generally depressed, it is little wonder that reinsurers are now looking to Iran not only as a diversifying interest but also as a new source of profitable revenue."

Saying that insurance is a great barometer of how well an economy is really doing, he says Iran with some $7 billion of premium generation is "nothing like we might have imagined."

With investment now set to flood back into Iran and with oil being freely traded, the prospects for the future are truly breathtaking, according to Easton.

"From an insurance perspective growth has already been impressive and there are currently some 28 Iranian private insurance and reinsurance companies plus one official governmental insurance company—Iran Insurance Company—which accepts upwards of 50 % of all risks," he says.

The market is very well regulated by Bimeh Markazi (Central Insurance of Iran) which was founded in 1971 for the purpose of regulating, expanding and guiding insurance companies in Iran. In parallel with its regulatory and supervisory role, CII receives a compulsory cession of all business and also conducts both inwards and outwards reinsurance business in the national and international markets.

As a Lloyd’s broker Matrix is very proud to have taken the initiative to invest in Iran, Esaton says. "We firmly believe that our experience and international connections will help the local market through our collaborative and highly innovative approach. We are very strong in financial lines and believe that there is a huge potential for us to assist the local insurance companies in their quest to support the Iranian banks as they endeavor to power the expected growth in the economy during the ensuing months and years."

The Matrix Group was established under the name “BMS Hellas” in October 2003, as a subsidiary of the BMS Group. A Lloyd’s registered broker is a broker who has applied and is approved by Lloyd’s, having met certain minimum standards and is able to place business directly with any Lloyd’s managing agent subject to the terms of business agreement.