Iranian regulators have approved the launch of Tehran Reinsurance Company, according to reports from The Financial Tribune.
It marks the fifth reinsurance company to be established in Iran, and the third to be founded within the last 12 months.
There have been question marks over the Iranian re/insurance industry since the US reimposed sanctions on Iran.
But as demand for reinsurance in the country continues to grow, foreign reinsurers not affiliated with the US have continued to work with Iranian firms.
The Central Insurance of Iran, which is the agency in charge of regulating the country’s insurance industry, said that it has received 30 applications for setting up new re/insurance firms.
So far, Amin Re and Iranian Re are the only two reinsurers up and running in Iran.
But Saman Reinsurance Company is set to launch soon and Pars Reinsurance Company, affiliated to Parsian Bank, has also acquired a permit from the regulator.
According to The Financial Tribune, Iranian insurance companies cover nearly $500 billion of risks.
President Trump declared on Tuesday May 8th, 2018 that he was withdrawing the U.S. from the Iran nuclear deal, a move that led the U.S. to reimpose sanctions on Iran.
And last year, tensions increased between the U.S. and Iran after it was revealed that President Trump ordered the U.S. killing of Iran’s top military commander, General Qassim Soleimani.
But Iranian officals believe that the country’s reinsurance sector still has the potential to rapidly expand, due to its membership in the Asian Reinsurance Corporation.