A Strategy to Face National Economic Shock by Potential Sanctions
In the technical Panel of Resistance Economy, Transportation, and Insurance, held as the fifth session of international event, Iran Transportation and Logistics Forum, organized at IRIB International Conference Center, Mr. Parviz Khoshkalam Khosroshahi, the Deputy President of Bimeh Markazi Iran (Central Insurance of IR Iran), put emphasis on the inevitable role of insurance in expanding transport industry and reinforcing economy against foreign menace.
Having expressed his sanguinity for such events aiming at developing the interconnectivity of insurance industry and national transport in vast grounds, Mr. Khosroshahi deemed the resistant economy sturdy and balanced against various economic and non-economic shocks, surviving with the least fluctuations. Accordingly, one of the approaches to imposing shock on modern economy would be sanctions targeting the international transactions of that economy.
Referring to insurance as a means of diminishing measureless intricate financial conflicts in small and large scale national and international transactions today, the Deputy President acknowledged that insurance play vital role in facilitating risk management, sustaining stability in economic activities, and leading to trade expansion both nationally and globally. Currently, with premium of 4.8 thousand billion dollars, above six percent of gross world product pertains to insurance.
Mr. Khosroshahi also pointed out that transport is indispensible to international communication, which itself contribute to another economic shock. He also added thatexclusive of insurance, transport industry would be paralyzed. Thus, one way to shock transport would be bringing insurance transactions to a standstill.
“Presently, insurance coverage is provided in many fields including cargo, marine, aviation, a range of liabilities related to local and international transport operators, driver’s third party liability, driver’s accident, and motor (PD)”, he explained adding that transport insurance penetration rate is more promising compared with other classes. In other words, insurance penetration rate in all other classes is 2.1 percent, whereas transport penetration rate is approximately five percent; 5.5 land transport, and 2.6 percent cargo, marine, and aviation. However, this is not agreeable and has to be expanded, in view of intact fields in transport. Given that, Bimeh Markazi Iran (Central Insurance of IR Iran) is willing to consider and assess any new insurance product, and in case the proposed products are insurable and their risk assessment is feasible, their supply permit shall be issued.
According to the Deputy President, training seminars and workshops provide excellent opportunity for expertise exchange concerning insurance supply and demand in different sections of transport industry.
Finally, letters of commendation were granted to top rated insurers from Pasargad Insurance Company for their admirable measures in the realm of transport risk management.
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