Insurance Risk

Companies will find that their business operations and assets in Iran are either uninsurable or subject to inadequate coverage and/or extraordinary insurance premiums because of the highly unstable and risk-laden political, legal, and business environment.

According to the Financial Times, “the insurance market remains averse to new Iranian business given that facilitating trade with Iran remains illegal for US citizens and entities, thereby constraining trade further.”  Research from the law firm Clyde & Co “shows that 85 per cent of respondents at London-based insurance companies said US sanctions ‘negatively impact their risk appetite for Iran-related business….  Even those London based insurers with no US operations are very concerned about the remaining US sanctions,’ said Chris Hill, partner at Clyde & Co.  ‘Those sanctions are proving a strong disincentive to such insurers providing cover for permitted EU-Iran trade.’”