Tehran, Iran, October 7
By Mehdi Sepahvand – Trend:
Foreign reinsurance in Iran is on the rise and has found new momentum after the nuclear deal was implemented, the public relations office of Razi Insurance Company told Trend October 7.
Examples of this have been the reinsurance by Lloyds of a watercraft that was under Razi Insurance coverage, as well as the reinsurance of natural disasters which was last week given over by the Central Insurance of Iran to France’s Scor, the public relations office added.
Reinsurance is insurance that is purchased by an insurance company (the "ceding company" or "cedent" or "cedant" under the arrangement) from one or more insurance companies (the "reinsurer") directly or through a broker as a means of risk management, sometimes in practice including tax mitigation and other reasons.
Iran’s nuclear deal was reached in 2015 with six world powers called the 5+1 (the US, UK, France, Russia, China, and Germany) in order to end financial restrictions on Iran.
For insurance companies, Iran is an enticing emerging market. Axco Insurance Information Services has reported that Iran is the largest non-life insurance market in the MENA region, as well as the 29th largest globally.
The Central Insurance of Iran, the industry’s regulating body and its largest reinsurer, announced on Thursday it has reached a much-anticipated agreement with France’s SCOR SE, based on which the major reinsurer will cover catastrophe excess of loss reinsurance for Iran.