Insurance of Oil Tankers by Insurance Companies: A Comparative Study of Iran and the World

Document Type : Original Article

Authors

1 Associate Professor, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

2 Assistant Professor, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

3 M.A in Economics, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

4 Instructor, Office of Energy, Industry and Mine Studies, Islamic Parliament Research Center (IPRC), Tehran, Iran

10.22034/jepr.2025.142957.1229

Abstract

The high risks associated with maritime transportation of oil via tankers and the capital-intensive nature of the industry underscore the necessity of insuring oil tankers, a process that has faced challenges under sanctions. Additionally, the low share of insurance premiums from oil and its transportation in the country's total insurance premiums reflects the disproportionate development between the two industries, with the oil industry outpacing the insurance sector.

The primary objective of this study is to assess the feasibility of insuring oil tankers by domestic insurance companies. This research is developmental in its goal and employs a descriptive-analytical method. Data collection has been conducted through library resources, and the analysis is based on a comparative methodology. Initially, leading global insurance companies specializing in oil tankers are examined, and their financial solvency and capital structure are compared with those of domestic insurance companies. Finally, domestic companies are modeled after their international counterparts.

The results of the study indicate that insuring oil tankers in Iran is economically feasible but requires establishing appropriate infrastructures, enhancing financial capacity, and advancing technical expertise in the field of oil tankers within the country's insurance industry.

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References

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History

  • Receive Date: 14 January 2025
  • Revise Date: 10 April 2025
  • Accept Date: 17 April 2025
  • Publish Date: 22 June 2025

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