Articles | Volume 24, issue 8
https://doi.org/10.5194/nhess-24-2707-2024
https://doi.org/10.5194/nhess-24-2707-2024
Research article
 | 
13 Aug 2024
Research article |  | 13 Aug 2024

Earthquake insurance in Iran: solvency of local insurers in light of current market practices

Mohsen Ghafory-Ashtiany and Hooman Motamed

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Cited articles

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Short summary
Iranian insurers have been offering earthquake coverage since the 1990s. However, despite international best practices, they still do not use modern methods for risk pricing and management. As such, they seem to be accumulating seismic risk over time. This paper examines the viability of this market in Iran by comparing the local market practices with international best practices in earthquake risk pricing (catastrophe modeling) and insurance risk management (European Solvency II regime).
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