Introduction and unveiling of Iran Moin insurance trust bonds
In the sixth “Innovation Tuesdays” survey, it took place:
According to Poli-Mali News, during the sixth “Innovation Tuesdays” campaign, jointly between Iran Moin Insurance, Mellat Insurance and Amin Reinsurance, the CEOs of each of the mentioned companies while expressing their opinions regarding this new financial product, answered the questions of the attendees. They also answered.
The CEO of Iran Reinsurance, Moin, emphasized that the specialized companies in the insurance industry should move away from being a single product and added: Therefore, in order to complete the company’s product portfolio, studying and obtaining a license to issue reinsurance bonds was placed on the agenda of investment management.
Mojtaba Heydari called the achievement of careful planning during the transition from general insurance to reinsurance the development of the technical and software infrastructure of the reinsurance company and stated that: a threefold increase in reinsurance income, obtaining a Takaful reinsurance license, registering the company in the stock market and achieving the largest registered capital. Among the reliable companies, one of the successes achieved by this company is in the ten months of 1401.
Reinsurance bonds, connecting the capital market and insurance
In the continuation of Iran’s reinsurance investment manager Moin, in introducing the reinsurance bonds, he said: these bonds show the participation of their holders in providing the required capital to accept all or part of the insurance risk portfolio and the proceeds from it. Trading in stock exchanges or over-the-counter markets.
Shahin Ahmadi, pointing out that one of the efficient and effective methods to cover the risk of reinsurance companies is to establish a direct connection between the insurance industry and the capital market through the securitization of insurance contracts, and added: among these bonds, reinsurance bonds can be used. He pointed out that it is structured based on the rules of the insurance contract and the power of attorney contract.
He stated: Based on these bonds, the insurance market shares part of the risk of its reinsurance operation with the capital market.
According to the investment manager of Iran Reinsurance Moein, the structure of these bonds is such that in exchange for accepting insurance risks, it can earn investors more profit than other similar securities.
Iran’s reinsurance investment manager Moin pointed out: It is possible for central insurance and insurance companies to carry out reinsurance operations of a part of their insurance risks by complying with the relevant regulations through reinsurance bonds.
Ahmadi stressed: Considering the risk-based nature of these bonds, the design of complementary financial instruments through put option in order to guarantee the minimum promised return, along with obtaining relevant guarantees such as collateral shares, bank guarantees or other cases, can be a useful tool. It provided for different investors, whether real or legal, to obtain a return commensurate with the accepted risk, and provided the basis for more communication between the capital market and the insurance market.
Source-public relations of reinsurance of Iran Ma’in