International insurance companies say they expect to see a major opening in the Iranian market in 2017 with several key players saying they have already won deals to cover businesses in the country.
Industry experts told Reuters that industry executives say aviation and energy are two main sectors in focus in Iran’s multi-billion insurance market.
They emphasized that top tier European export credit agencies had specifically become active in guaranteeing trade finance for Western companies doing business with Iran.
Reuters further added that Germany's Hermes, Italy’s SACE, and France's Coface have all recently signed agreements to guarantee a certain trade activity with the Islamic Republic.
"About a dozen transactions have been approved so far," an unnamed Hermes spokesman told Reuters.
"The demand is there from the exporters' side but they need a lot of information. There is a continuous and rising flow of applications (for export credit guarantees)."
SACE emphasized that it had also undertaken its first small transactions with Iran.
"The lingering risks should not be underestimated, however, as they might create problems ... legal, documentary, operational, for companies interested in building or restoring commercial or financial relationships with local counterparties," a SACE spokesman said.
Furthermore, France's Coface told Reuters that the company had signed an agreement with Iran to guarantee trade finance on behalf of the French government.
Christian Bieri, EMEA reinsurance head at insurance group MS Amlin, said Iran was "very much under discussion" by insurance companies.
"It’s very high up the agenda," Bieri told Reuters. "It's going to be something for 2017."
Lloyd's Chairman John Nelson emphasized that his company had historically been active in Iran, stressing that the Islamic Republic was a "market we would like to get back into".
Other large insurers and reinsurers such as Hannover Re are also looking closely at Iran, Reuters added.