Filed under: Bad News
If you do business with Iran, it’s probably going to be harder to get insurance coverage. Regulators and lawmakers in the U.S. are looking for stiffer penalties to thrust upon companies that do business with Iran. And insurers, likely acutely aware of how risk can spread, are starting to pull back.
Munich Re (0KFE) and Allianz (AZSEY) announced that they are suspending business in Iran, according to a report by Business Insurance. Neither company, however, stands to lose much. For Allianz, the lost premium is “negligible,” and for Munich Re, it’s only around $13.6 million.
According to a statement by Munich Re, “Due to the political situation in Iran, Munich Re has decided to not renew existing business or write any new business with insurance companies there.”
Most of the heat is coming from the U.S., which already has a law against direct U.S. investment in Iran. A new measure, the proposed Iran Refined Petroleum Sanctions Act of 2009, would put tougher sanctions into play, both for U.S. and foreign companies that are effectively a step removed from Iran – i.e., those that do business with companies that do business with Iran’s energy sector. The legislation has already passed the House of Representatives and the Senate, though in different forms.
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Insurance Industry Faces More Pressure on Iran originally appeared on BloggingStocks on Mon, 01 Mar 2010 10:50:00 EST. Please see our terms for use of feeds.
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