Following President Trump’s announcement on May 8th that the U.S. is withdrawing from the Iran nuclear deal and subsequently reimposing sanctions, global reinsurer Swiss Re is assessing the impact of the U.S. withdrawal on its business.
After the removal of sanctions in January 2016, numerous insurers and reinsurers have either conducted business or looked to enter the Iranian insurance and reinsurance marketplace. However, Trump’s recent announcement that the U.S. is to withdraw from the Iran nuclear deal has raised some potential implications for global insurers and reinsurers.
One company that is currently considering its presence in the Iranian market is global reinsurance giant Swiss Re, although it’s important to stress that no decision has been made about its future presence in the region.
A spokesperson for the Switzerland-based reinsurer told Reinsurance News that “Swiss re is currently assessing the impact of the announced US withdrawal on its business whilst anticipating further guidance from the US authorities and the EU.
“We have not yet made any decision regarding our presence in Iran.”
Since Trump’s announcement a number of re/insurance industry experts and observers have discussed the potential implications. This includes international law firm Clyde & Co, which warned that regardless of the political consequences, “reimposed sanctions and new penalties put insurers under immediate compliance pressure to investigate their risks.”
According to Reuters, global insurance market players such as Allianz, Arthur J. Gallagher, and the Lloyd’s of London market are monitoring the situation in Iran and assessing potential implications to business following the withdrawal of the U.S.