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European insurance companies accept some Iranian insurance risks

Saturday, Apr 28, 2018

Abdul Nasser Hemmati, President of the Central Insurance of Iran, said following talks between the Iranian insurance industry and major European companies such as Munich Ray and Lloyds, 30 of Irans reinsurance cover will be given to Europe.

(SHADA: TEHRAN) -- Abdul Nasser Hemmati expressed hope that the Sixth Edition of Iran-Europe Banking and Business Forum would help develop cooperation between Iran and Europe, calling for evaluating the level of progress of bilateral relations after each forum.

Stating that the insurance industry in Iran has a high potential for cooperation with Europe, he said: We have had very close negotiations with the heads of the major insurance companies after the nuclear deal (known as JCPOA) and we have achieved good success.

The insurance industry in Iran has grown 4.5 times the GDP in the past two decades, and insurance penetration is developing rapidly, he said, adding: According to the parliamentary approval, by the end of the Sixth Development Plan, the insurance penetration should be significantly higher than 2.3%, which requires investment.

According to him, life insurance coverage in Iran is less than 20% and home fire insurance is less than 15%.

The President of the Central Insurance of Iran also said the turnover of the insurance industry in Iran was more than 13 billion euros last year, adding: With the development of the insurance culture, there could be more growth in the Iranian insurance industry.

There are currently no problems with the insurance coverage of Iran's oil tankers and shipping, Hemmati noted, saying: Good measures have been taken in using reinsurance for catastrophic accidents.

Hemmati further announced that Iran's insurance industry is ready to carry out insurance activities if the US leaves the JCPOA.

The annual premium for life insurance has increased by 40 percent from last year, indicating a high capacity for cooperation between Iran and Europe, he noted.

In the field of oil and gas and petrochemicals, we have started some good work, one of which is the development of the 11th phase of the South Pars; we are negotiating with France’s Total in this regard, and domestic insurance companies will cover its insurance, Hemati said.

The President of the Central Insurance of Iran also pointed to the establishment of the Natural Disaster Fund, saying that its establishment is in final stages and can be a good basis for cooperation between Iran and Europe.

Iranian insurance companies have great potential for profitability and the insurance industry can be a good place to work with Europe, Hemmati stressed.

In the end, he said the Iranian insurance industry has traditionally been linked to European companies and intends to maintain the relationships.


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