75075
Push for Reinsurance Reform
Economy, Business And Markets

Push for Reinsurance Reform

Reinsurance industry’s representatives have sent a letter to Abdolnasser Hemmati, the head of Central Insurance of Iran, urging him to stop other insurance companies from being active in the reinsurance sector, the chief executive of Amin Reinsurance Company said.
“Accepting reinsurance services from general insurance companies is nowhere customary in the world because it causes a conflict of duties and ultimately leads to a violation of premium rates and lack of optimized risk evaluation,” Seyyed Mostafa Kiaei was also quoted as saying by Risk News.
The official, who was speaking in a press conference, added that the foray of general insurance companies into the reinsurance sector takes it out of its specialized context and makes it less valuable.
While negotiations with CII have yet to yield results, the chief executive said he remains hopeful that general insurance companies would not be able to renew their reinsurance licenses next year so that more investments can be attracted to the market.
Stopping general insurance companies from entering the reinsurance market would help prepare the Iranian industry’s entry into international insurance markets.
“If we want foreign insurance companies to enter the Iranian market, it is necessary to take a second look at the structure of premiums because it must be reformed,” he added.
As to other challenges facing the Iranian reinsurance industry, Kiaei spoke of the neglected capacity and the low potential of specialized reinsurance firms.
“Iran Insurance Company and CII handle the bulk of reinsurance activities in Iran,” he said, adding that reinsurance companies themselves have larger capacities than their state-owned rivals.
Reinsurance representatives have been in correspondence with CII officials and officially called on them to seek a solution as “reinsurance work is for reinsurance companies and nowhere in the world do insurance companies engage in reinsurance activities”.

 

Short URL : https://goo.gl/nf7FSR
  1. https://goo.gl/HN3TZd
  • https://goo.gl/nFQFR3
  • https://goo.gl/Schnsi
  • https://goo.gl/ezbcu5
  • https://goo.gl/vnLq3f

You can also read ...

Valiollah Seif
Governor of the Central Bank of Iran said on Wednesday anti-...
Nat’l Virtual Currency in the Offing
Months after the idea was first publicized, it seems that Iran...
5th Indian Wheat Cargo Arrives for Afghanistan in Chabahar
India’s fifth consignment of wheat to be sent to Afghanistan...
Presale Crosses  96,000 Gold Coins
The presale of Bahar Azadi gold coins priced at 14 million...
Spanish Foreign Minister Alfonso Dastis met with President Hassan Rouhani on Feb, 21.
Foreign ministers of the Netherlands and Spain are in Tehran...
Lexus’ New Crossover to Break Cover  in March
Lexus will pull the covers off of the production version of...
The government has required car importers to pay the higher tariffs announced in January.
The government has finally allowed the clearance of imported...
Bank Loans Top $100b in 10 Months
Banks and credit institutions doled out more than 4.62...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus