Munich Re eyes Iran market

Iran has announced that Munich Re is considering to provide its services to the Islamic Republic.

The announcement was made by Abdul-Nasser Hemmati, 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, emphasised 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 in a report in Press TV.

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. Iran’s media recently reported that the Lloyd’s of London insurance market was preparing to launch offices in Iran.

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 USD7.4 billion in premiums.

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 said in October.