Iran proposes $10 billion BRICS reinsurance company

Investing.com -- Iranian President Masoud Pezeshkian on Friday proposed creating a joint reinsurance company among BRICS member states with starting capital of $10 billion to cover large-scale infrastructure and energy projects.

"Another specific proposal of the Islamic Republic of Iran is the establishment of a BRICS joint reinsurance company with an initial capital of $10 billion to cover the risks of major infrastructure and energy projects and increase private sector confidence," Pezeshkian said in the address, according to a post by the embassy of Iran in New Delhi on X.

Consultancy Rystad Energy estimates that damage to energy-linked infrastructure from the Middle East conflict could require up to $58 billion in repairs, including as much as $50 billion for oil and gas facilities.

The war involving Iran, the United States and Israel has strained insurance capacity for marine, energy and political-violence risks across the Middle East. Market estimates put insured marine war and political violence and terrorism losses from the conflict at about $3 billion so far, with the final total still uncertain.

Countries have taken steps to support capacity as the conflict disrupted shipping and trade. The U.S. International Development Finance Corporation announced in March a maritime reinsurance facility that could cover losses of up to about $20 billion, initially focused on hull, machinery and cargo risks in the Gulf.

India has set up the Bharat Maritime Insurance Pool, covering hull, cargo, protection and indemnity and war risks for Indian-controlled or flagged vessels. The pool can pay claims up to $100 million from its own capacity before a sovereign backstop can be called upon.

BRICS consists of 11 countries, including Brazil, Russia, India, China, South Africa, Iran and several Middle Eastern and African states.

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