Lloyd’s of London has started talks with Iran’s insurance industry for a potential expansion into the Middle Eastern country.
Inga Beale, the specialist insurance market’s CEO, met last Friday with Abdolnaser Hemmati, president and head of the High Council of Insurance of Bimeh Markazi Iran, state-run Mehr News Agency
According to the report, Beale stressed that Lloyd’s insurance syndicates are willing to establish their presence in Iran.
Beale also drew attention to Lloyd’s previous activities in the Iranian market and emphasised the need to thresh out issues related to money transfers in its insurance industry.
For his part, Hemmati said that Lloyd’s presence in Iran will hold “great significance,” according to Mehr News Agency. He also proposed the creation of a committee to provide grounds for the activity of Lloyd’s insurance syndicates in Iran’s free zones.
In response, Beale urged two international directors of Lloyd’s to visit Iran’s capital, Tehran, and conduct negotiations with senior officials of the High Council of Insurance of Bimeh Markazi Iran.
The US and United Nations lifted economic sanctions on Iran in January this year. However, international brokers and reinsurers are still hesitant to enter the market, according to the Axco Insurance Information Services.
Axco said in its latest country report that Iran is the largest non-life insurance market in the Middle East and the 29th largest market globally as of 2014.
The report said Iran’s non-life market premium income, excluding its health business, grew 22.6% from 2014 to 2015.
“Despite all the challenges Iran has faced over the past few decades, Iran offers huge opportunities, which we see only growing as there is more foreign investment,” said Tim Yeates, managing director at Axco.
“However, it’s important to understand the risks and challenges that the Iranian market offers.”
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