Iran: Nat CAT insurance fund on govt's agenda
Source: Middle East Insurance Review | Feb 2018
The adoption of a natural disaster insurance fund is currently on the agenda and Central Insurance of Iran (CII), the industry regulator, is awaiting approval for the fund from the government.
Dr Abdolnaser Hemmati, CII President, said that the take-up for earthquake insurance is very low in Iran, with 11% of all residential homes having fire insurance and 7% earthquake cover, according to local media reports.
He had renewed a call for establishing a natural disaster insurance fund, immediately in the wake of the 7.3-magnitude earthquake on 12 November 2017 which shook the western province of Kermanshah and the area bordering Iraq. The earthquake left at least 436 people dead and more than 10,000 injured in both Iran and Iraq. Dr Hemmati had revealed then that a Bill aimed at establishing a natural disaster insurance fund was presented by CII several years ago, but it has remained in limbo.
Meanwhile, Professor Mohammad Shakrchizadeh, Head of the Roads, Housing and Urban Development Research Centre, has called for the modification of building insurance standards and collaboration with insurers to ensure the quality of residential units.
He said: “Unfortunately, at the moment, construction companies are not obliged to guarantee the quality of their buildings. There is a need for a major reform in this regard.” M