London, Reuters, 26 July 2015 – Western and Middle East insurance specialists see Iran as an appealing $8 billion (£5 billion) market in the wake of its nuclear deal with world powers, though uncertainty over when sanctions on Tehran will be lifted means they are treating the country with caution.
The deal has still to be approved by the U.S. Congress, where hawkish Republican foes of President Barack Obama oppose it, and also faces objections from influential conservative hardliners in Iran.
The process of rescinding sanctions could start around the end of this year.
Several insurers, including Lloyd’s insurer Beazley, said, however, they had not yet started researching the market.
“It has been a country we cannot deal with because of sanctions, so we need more clarity,” said Andrew Horton, chief executive of Beazley.
There are also worries about a regional backlash over the nuclear agreement by adversaries of Iran such as Saudi Arabia and Israel, or a failure by the Islamic Republic to honour the deal’s terms.
“The fact of the matter remains the religious and geo-political elements that exist within the region,” said one Dubai-based insurance executive. “It’s not going to be easy.”