Global reinsurer SCOR has reached an agreement with the Central Insurance of Iran (CII) to provide catastrophe excess of loss reinsurance protection in the country, a move that supports the development of the country’s insurance and reinsurance industry.
Since the lifting of sanctions in Iran in January, 2016, the CII has talked with over 140 foreign insurers and reinsurers that have expressed interest in entering the Iranian market. Currently, the CII, Iranian Re, and Amin Re are the only three reinsurers in the country.
Sara Haghighivand, a member of the Professional Committee of High Council Insurance, speaking to Iranian publication, Financial Tribune, said; “It’s important to transfer more risks to credible foreign reinsurers, since more risk is distributed across a broader geographical area,” adding that working with firm’s like SCOR would encourage other players to enter the Iranian market.
The agreement was finalised following a meeting between CII President, Abdolnasser Hemmati and Victor Peignet, the Chief Executive Officer (CEO) of SCOR Global P&C.
Hemmati and Denis Kessler, the Chairman of the Board of Directors and CEO of SCOR, both underlined that the agreement signalled a new era of cooperation between Iran and SCOR.
With sanctions being lifted and company’s like SCOR entering the marketplace, it could be that other foreign players look to participate in the Iranian insurance and reinsurance market, especially with margins thinning across the sector and companies eager to find new, potentially more profitable business lines.