the design of reinsurance sukuk for transferring risk in oil industry

because iran’s economy is based on oil industry, related issues in this area are very important. one of the important issues in this context is the low participation of oil industry in the total portfolio of the insurance industry that suggests numerous challenges in the interaction between the two. in addition, the imposition of international sanctions against oil projects and oil shipping insurance have created new sets of problems which call for scientific and applied researches in this field. various investigations indicate that the failure of domestic insurance companies in entering into oil industry is related to lack of capital capacity in iran’s insurance industry. this practical study has used an analytical descriptive method which tries to suggest different solutions for interaction between capital markets and insurance to solve the main issue which is “lack of capital capacity in iran’s insurances”, through the risk securitization which provides a new financial instrument called “islamic reinsurance financial securities (reinsurance sukuk)” to transfer the risk in oil industry based on imamia jurisprudence. this instrument is introduced as a comprehensive solution to be utilized in the interaction between insurance industry and the capital market, and has gained more importance especially under international sanctions when the government has established specific funds for supporting reinsurance policies, thus converting the sanction threat to opportunity. in addition, reinsurance sukuk is an efficient solution for increasing capital capacity of insurance companies in non-sanctioned periods. very high standards in oil industry and the low probability of incurring damages on the one hand, and heavy demanded premium on the other, have increased the efficiency and attractiveness of these instruments.