The Iran Project

Iranian insurance industry awaiting international companies

Although the history of insurance in the Iranian economy dates back to almost 90 years ago and Iranian insurance companies have been offering services in this industry for many years, the advent of technology and new economic relations necessitate fundamental reconsideration and modification of the insurance rules, coverage and rates.

Considering the fact that some international transactions such as freight transportation are carried out by air, sea, and land, the Iranian Insurance Industry lacks enough capital to meet the high demand in this area. In this regard, we can mention the need to insure tankers carrying Iranian oil and its by-products to international customers from different continents. If part of the risk facing some oil and gas projects, such as oil and gas projects in South Pars Gas Company (SPGC) located in Assaluyeh, Bushehr province, is covered by international insurance or reinsurance companies, it can improve the coverage level of these risks. The Iranian Aviation Industry can also cede part of its risk to foreign insurance companies.

An important issue currently facing the Iranian Insurance Industry is the challenge of updating its knowledge and transferring new knowledge on international insurance to Iran. However, this has failed in Iran owing to the prohibition of contracts in recent years. Nonetheless, it was previously possible for some insurance companies, such as Saman Insurance Co., to conclude contracts with some foreign reinsurance companies for knowledge transfer.

If these relations between Iranian and foreign insurers are re-established at the international level, it will be possible for Iranian insurance companies to make their services more competitive and adapt the texts and rules of their insurance policies with the new international insurance laws. Furthermore, thanks to the recent rise of online insurance services in insurance sales services, compensation payment and risk assessment, Iranian companies can make use of this knowledge on a large scale and not only sell their insurance services to other countries, but also update their risk assessment and compensation services.

Yet, some insurance companies, such as Saman Insurance Co., have in recent years set up an international sector to provide some infrastructure in this area so that they can quickly adapt to new conditions and offer proper services in this area when the existing restrictions are over.

A good international market for Iranian insurance companies is where they can provide services to Iranians diaspora. Some Iranians who have migrated to other countries for life or work purposes will be as happy as other nations if they can cede some of their insurance services to Iranian insurers.

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