Menu

Reinsurance News

Initial loss estimates for Iran earthquake at $641 million

22nd November 2017 - Author: Staff Writer

Early estimations for economic losses from the 7.3 magnitude Iran earthquake that killed over 500 people and injured thousands put total losses at $641 million, according to the Kermanshah Province vice governor, Mojtaba Nik-Kerdar.

greece-turkey-earthquakeThe financial tribune quoted Mojtaba Nik-Kerdar’s estimate of $197 million of losses attributed to properties in the damaged area, including houses, commercial units and offices.

Ebrahim Hamidi, a member of Iran Insurance Company’s Strategic Council, said just 2-3% of properties in the catastrophe-struck region are insured.

The largest and the only state-owned firm in the country, Iran Insurance Company said it’s already paid out $1.3 million to 1,320 claims.

While the Iranian government will be left to pick up most of the earthquake’s total losses, the event highlighted the need for a natural disasters insurance fund.

President of Central Insurance of Iran, Abdolnasser Hemmati, said; “a bill aimed at setting up such a fund was presented by CII several years ago, but has remained in limbo,” he urged the government and lawmakers to help ratify the bill, the realization of which would mark a revolution in the earthquake insurance industry of Iran, according to the Financial Tribune.

If the new bill is passed, it would make fire insurance, including earthquake insurance, mandatory.

Risk pool facilities have proven their value in making natural disaster insurance accessible within developing countries; limiting financial impact to governments of catastrophic natural events by the provision of short-term liquidity when a policy is triggered.

The Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) is one such example, having recently been successfully deployed to mitigate post-hurricane fallout in its Caribbean member states.

Global re/insurers have been looking to do business in Iran after the sanctions were lifted in January 2016, and while entering into this market isn’t without its challenges, the opportunity is highlighted by the lack of insurance protection from recent earthquakes.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Starr Companies enters into aviation insurance agreement with SMARTT MGA

Starr Companies has announced a new partnership with SMARTT MGA, that sees the latter act as Agent for Starr International...

Close