Lloyd’s platform affected by Iran sanctions
New US sanctions are likely to prevent the use of a Lloyd’s of London IT platform for any Iran insurance, adding to difficulties for European insurers providing cover for the country, according to a July 13 Reuters report citing chairman Bruce Carnegie-Brown.
Carnegie-Brown told Reuters the re-imposition of sanctions meant insurers “probably” would not be able to process Iran-related business through the Lloyd’s platform, partly owned since 2017 by US firm DXC.
Lloyd’s of London and other European insurers provided marine, energy and trade credit cover for Iran after the US lifted secondary sanctions in January 2016 following a nuclear deal between world powers and Iran reached in 2015. The EU also lifted sanctions in January 2016. In June, 2018, the US Treasury’s Office of Foreign Assets Control (OFAC) revoked licences which had allowed foreign subsidiaries of US firms to trade with Iran.
“You can do it through Lloyd’s through other settlement mechanisms outside DXC, it’s just more complicated and more expensive to do it that way,” Carnegie-Brown told Reuters.
“There is a bit of an evaluation going on about what business opportunities there are, in any event.”
DXC provides data processing and other back office services to Lloyd’s and other London insurers through two firms, XIS and XCS, that are jointly owned by DXC’s British subsidiary Xchanging, Lloyd’s and the International Underwriters’ Association, Reuters noted.
Lloyd’s insurers and brokers with Iran business included Chaucer, Ed Broking, RFIB and UIB, according to Reuters.
Iran’s economy is heavily reliant on its oil industry and needs marine insurance to ensure the smooth flow of maritime trade for both its exports and imports.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Fitch raises asbestos claims estimate to $100bn
JLT Re poaches Guy Carpenter talent to head credit and surety
EPUL boosts commercial property underwriting with ex-MS Amlin, Zurich hire
Brown & Brown snaps up US specialty claims management provider PDA
