ERGO Group Seeking Iran Access

ERGO Group, one of the largest insurance groups in Europe, is keen on entering Iran’s insurance market, Alexander Ankel, chief operating officer of ERGO International, told the 23rd International Conference on Insurance and Development in Tehran on Saturday.

“Several new insurance companies have been established in Iran in recent years, which indicate [the Iranian] market’s high potentials,” IRNA quotedAnkel as saying. 

 “We are aware that Iran has managed to considerably increase the insurance penetration rate to 2%, despite the hardships caused by sanctions against the country,” he added.

Established in 1997, EGRO operates in over 30 countries, especially in Europe and Asia. In Europe, ERGO claims to be number one in the health and legal expensesinsurance

segments, and is among the market leaders in its home market of Germany. 

Munich Re owns 99.96% of ERGO’s shares. Earlier this month, the major reinsurer expressed interest in returning to Iran, during a meeting with Iranian top officials in Germany. 

Iranian insurance firms reportedly held meetings with 40 insurers from Germany, the UK, France andAzerbaijan Republic on the sidelines of the event. 

According to Iranian Insurers Syndicate, 38 well-known foreign experts also made speeches during the conference.

Gov’t Stance 

Economy Minister Ali Tayyebnia also called on the Central Insurance of Iran and Iran Insurers Syndicate to clear the path for foreigners’ partnership and investment.

“We are not trying to transfer risks to foreigners but we want them to invest in the industry,” he said in comments to the opening ceremony of the conference on Saturday.

“So far, foreigners’ presence has been limited to liaison offices. CII should take the necessary measure neededfor

establishment of foreign insurers’ branches in Iran and supervision of their operations.”

Tayyebnia noted that the Industry’s top regulator should also ease the conditions for foreigners interested in investing in the Iranian market. The economy minister also announced that the VAT Removal Bill will be sent to the parliament next month. If approved, the bill will exempt the insurance industry from taxes. 

Reuters reported last month that western insurers are slowly reaching deals with Iran, as they seek to reenterthe

multibillion dollar market. This is while the pace of business is hampered by banking restrictions 11 months on from the lifting of international sanctions. 

Insurers and reinsurers from the UK, Germany, France and Japan have reportedly held talks with CII over entering Iranian market in the post-sanctions era.