Banks and insurance companies cooperate doubles capital

2/16/2016 0:00

BAGHDAD - Mustafa al-Hashimi
Called for private sector representative for insurance companies, Saadoun al-Rubaie, the central bank to urge banks to provide protection and security for the funds and assets, employees and customers in cooperation with the Iraqi insurance companies.

He said in an interview for »morning» to the importance of the contribution of private banks in the money insurers heads Conversely, in order to promote sectors of banks and insurance, including contributing to the increase of capital, stating: that the banking and insurance sectors contribute to the economic development process.

Rubaie said: highlights the role of insurance companies in the accumulation of capital employed in addressing the economic effects of the dangers that are in compensation for economic losses incurred by state institutions and facilities, companies and individuals and expose them to the risk of unexpected.

He said al-Rubaie, the insurance provides banks a guarantee and insurance services to contribute to reducing the risks and provide protection to the dangers of credit and default risk in the repayment of loans and the inability of the borrower to fulfill its financial obligations.

He continued: risk covered by insurance companies, whether civil or government were the exchange rate risks arising from dealing in foreign currencies, and interest rate risk, and the possibility of high and low rates because they are a changing, and risk pricing resulting from changes in asset prices, including the investment portfolio, and legal risks, as well as operational risks either the human or technical result of fraud, forgery and burglary, including the risks of manipulation of information in the computer records.

He stressed that cooperation and coordination between banks and insurance companies that provide necessary to achieve financial banking stability insurance protection, taking into account the revitalization of the regulatory and administrative and marketing mechanisms of action and develop its work for the protection of loans and insurance recovered.

Stressing the issuance of public and private insurance companies insurance products fit the work of banks, including the overall banking document and the document of insurance-based to ensure that goods imported or exported credits, marine insurance - wild - Alnehra- air.

He Rubaie expressed regret about a lot of banks and customers from importers who believe the securing foreign companies and seek to deprive the Iraqi insurance companies of the substantial financial resources represented insurance premiums, calling on the Office of insurance to issue instructions to all ministries, institutions and government departments and provincial official and other parties of the need to have insurance to the Iraqi public and private insurers alike, stressing the need to amend the law regulate insurance business No. 10 of 2005 and of its disadvantages do not serve the goals of insurers.