Germany’s Munich Re eyeing Iran’s market

Iran says Germany’s Munich Re – the world’s biggest reinsurance company – is considering to provide its services to the Islamic Republic. 

The announcement was made by Abdul-Nasser Hemmati, the president of the Central Insurance of Iran.

Hemmati, during a visit to Germany to discuss the prospects of post-sanctions investment opportunities in Iran by insurance companies, emphasized that top officials from Munich Re had told him that the company is interested in providing life insurance and other related services to the Iranians and also cooperate with the Central Insurance of Iran in training programs.

Those officials included the company’s Board Chairman Von Bomhard and Vice President Joachim Wenning, Hemmati said.

He further added that he had urged Munich Re to offer its latest services to the Iranian market.     

Last October, Iran’s domestic media quoted Mina Sadiq Nouhi, the deputy director for reinsurance affairs of the Central Insurance of Iran, as saying that Munich Re had made a significant offer for covering a variety of insurance services in Iran after sanctions were eased.

Sadiq Nouhi added that foreign insurance companies like Lloyds and Munich Re used to account for 80 percent of the reinsurance coverage in Iran before the international sanctions were imposed. 

However, after the country's exclusion from interbank payment system SWIFT in 2012, they were replaced by Asian, African and Middle East insurers in Iran's insurance market, the Financial Tribune quoted her as saying.  

On Sunday, Iran’s media reported that the Lloyd's of London insurance market was preparing to launch offices in Iran.

Inga Beale, the CEO of the world's leading specialty insurer, was quoted by Iran’s domestic media as saying that Lloyd's of London would establish branches in Iran’s free trade zones.

Following the removal of sanctions against Iran in January, indications appeared to show that global insurers were looking into the prospects of penetrating into a market whose worth is estimated to be around $7.4 billion in premiums. 

According, European majors including Allianz, Zurich Insurance, Hannover Re and RSA were the first to announce that they would evaluate potential opportunities in the country specifically in its marine, aviation, power generation and energy sectors.

Nevertheless, the only companies that have already taken steps to create a foothold in Iran’s insurance industry have been Germany's Hermes, Italy’s SACE, and France's Coface. They have all recently signed agreements to guarantee a certain trade activity with the Islamic Republic, Reuters in October.   

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