The governor of the Central Bank of Iran has revealed that the Supreme Council of Economic Coordination has endorsed the importance of creating a universal insurance fund to cover losses caused by natural disasters.
Mr Abdolnasser Hemmati said that 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 Mr 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 that barely 10% of the flood-affected people had property and farmland insurance.
Mr Gholamreza Soleimani, the current CII head, has also urged that legislation be passed to establish a natural disaster insurance fund.