Global insurers plot cautious course to Iran
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SYDNEY/LONDON - Global insurance firms are circling Iran for business opportunities following the lifting of sanctions - and the first test of their appetite could come in March when some Iranian companies seek new cover.
Insurers, the reinsurers that share their risk and the brokers that forge deals are exploring ways to tap a market worth $7.4 billion in premiums after a nuclear accord between world powers and Tehran led to the removal of restrictions on financial dealings with Iran this month.
Allianz, Zurich Insurance, Hannover Re and RSA, for example, said in recent days that they would evaluate potential opportunities in the country.
Insurance and reinsurance specialists regard the marine and energy sectors as among those offering the best opportunities in oil-producing Iran. Alongside commercial cover, life insurance is a potential growth area as it represents less than a tenth of overall Iranian premiums, compared with more than half globally.
At first international companies are likely to link up with Iranian firms to capitalise on their local knowledge and to reinsure local insurance in the international market, according to industry experts, with international brokers helping foreign firms get that business.
