UN sanctions to cut cover of Iran’s petroleum shipments
Insurers such as Lloyd's and Munich Re could be hit by UN sanctions for insuring Iran’s petrol supplies, the FT reports.
The FT quotes a western diplomat talking about sanctions on insurers as saying: "It is something that would have real impact and . . . would be achievable but as one of a package of measures."
Pieter Van Tol, a partner at New York law firm Lovells said: "The insurance/reinsurance industry in general is quite nervous because the industry is being specifically named for the first time as a target."
Insurers would comply
Lloyd’s said: "Lloyd's covers less than 10% of the shipping that carries refined oil to Iran. If new sanctions were put in place, we would immediately take action to make sure underwriters were compliant."
Munich Re said it would review any new financial and trade sanctions.
Van Tol said: "The Chinese insurance/reinsurance industry is not very well advanced or capitalised . . . if the big players in the market drop out, it is not realistic to think that there is enough . . . capacity to fill the void in a significant way."
