Bazargan proposes establishing a joint reinsurance company for BRICS

According to a post by the Iranian Embassy in New Delhi on the X platform, Beshkayan stated in his speech, “Another specific proposal from Iran is the establishment of a joint BRICS reinsurance company with an initial capital of $10 billion to cover risks associated with major infrastructure and energy projects and to bolster confidence in the private sector.”

Rystad Energy Consulting estimates that damages to energy-related infrastructure caused by the conflict in the Middle East could require up to $58 billion to repair, including approximately $50 billion for oil and gas facilities.

This proposal comes as the war involving Iran, the United States, and Israel has strained private insurance capacities for marine risks, energy projects, and political violence risks across the Middle East.

Market estimates indicate that insured losses related to maritime wars, political violence, and terrorism stemming from the conflict have reached approximately $3 billion so far, although the final toll remains uncertain.

Countries have already taken steps to bolster insurance capacities following disruptions to shipping and trade caused by the conflict. In March, the U.S. International Development Finance Corporation announced the creation of a maritime reinsurance mechanism capable of covering losses of up to approximately $20 billion, with an initial focus on risks to ship structures, equipment, and cargoes in the Gulf.

The mechanism can pay claims of up to $100 million from its own capacity before resorting to sovereign guarantees.

The BRICS group comprises 11 countries, including Brazil, Russia, India, China, South Africa, and Iran, along with several countries from the Middle East and Africa.