Iran: Economic council backs proposal for universal insurance fund for Nat CATs
Source: Middle East Insurance Review | Jun 2019
The governor of the Central Bank of Iran has revealed that the Supreme Council of Economic Coordination has endorsed the creation of a universal insurance fund to cover losses caused by natural disasters.
Dr Abdolnaser Hemmati said the creation of the fund was proposed at a meeting of the Council, which comprises heads of the three branches of government and which addresses major economic issues, according to a report in Financial Tribune.
The idea for a Nat CAT fund was earlier proposed by the Central Insurance of Iran (CII), while Dr Hemmati was the chairman of the government-owned insurer which serves also the insurance industry’s regulator.
Recent floods in Iran have inflicted losses said to be up to $3.6bn. A member of the High Council of Insurance – a major insurance regulatory body – said barely 10% of the flood-affected people had property and farmland insurance.
Mr Gholamreza Soleimani, the current CII head, has also urged for legislation to be passed to establish a natural disaster insurance fund. M