published by: Admin
Improving Resilience, Boosting Capital Imperative for Insurers
Insurance companies are required to enhance resilience and increase their capital before the current fiscal year is out in March, head of the Central Insurance company of Iran said.
Underscoring the need for capital restructuring, Gholamreza Soleimani said the risk retaining capacity of insurers is low due to high inflation.
“Insurance companies have not restructured their capital proportionate to high inflation and the ballooning money supply. Not doing so will [further] undermine their risk retention capacity,” he was quoted as saying by the IRIB.
Risk retention in the insurance sector refers to the amount of risk that an insurance company is willing to pay for a policy, risk or group of risks.
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