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US sanctions impact Iran's reinsurance deals with foreign companies

Business Materials 3 December 2018 09:57 (UTC +04:00)

Tehran, Iran, Dec.3

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Iran Insurance industry has halted the cooperation with reinsurance foreign companies due to the US re-imposed sanctions.

"After implementation of the US sanctions, the Iran reinsurance got separated from foreign companies, to reduce the insurance risks by the aid of domestic companies," Head of Central Insurance of Islamic Republic of Iran Gholamreza Soleymani Amiri told Fars News Agency.

"Therefore to avoid any risk in investment market, we require cooperation with Islamic financial markets," he said.

"Some Islamic countries do not accept the common insurance system while 12 of them including Saudi Arabia, Pakistan and Bahrain have been pursuing the Takaful approach. Thus, the insurance industry with the Takaful approach is active in these countries with a market value of $12 billion,” he added.

Takaful is a type of Islamic insurance, where members contribute money into a pool system in order to guarantee each other against loss or damage. Takaful-branded insurance is based on sharia, Islamic religious law, and explains how it is the responsibility of individuals to cooperate and protect each other.

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