17% of Iraqis work with the insurance system and a clear absence of a culture of work


It seems that Iraq, despite its large resources both at the level of the government or the individual Iraqi is still away from the financial system has become a priority of developed countries, "insurance" and various sectors of physical and public property, and so far only 17% are employed by the system according to statistics for specialists, despite the quest of companies Government and private insurance to develop this system and make it of the prevailing systems in the country and enter all joints.

There are three government insurance companies in Iraq (National Insurance Company, Iraqi Insurance Company and Iraqi Reinsurance Company), as well as 33 private insurance companies.
Most premiums come from the government

"The insurance culture is still below the level of ambition. There are very few citizens who call for insurance or those who participate in the insurance system. This is due to the lack of a culture of insurance, as well as the absence of legislation," said Sadiq Abdul Rahman, head of the Insurance Bureau. They are required to enter the insurance system as is the case in the rest of the world. "

"The insurance companies in Iraq today have good premiums compared to previous years, after 2003 under the market movement and trade in Iraq, but most of those premiums come from the government and not from traders or citizens."

"Most of the goods entering Iraq are insured outside of Iraq," he said. "The company comes in with its goods insured by companies outside Iraq, Arab or foreign, and when it reaches Iraq, it loses its security and does not believe in fire or companies in Iraq."

Abdulrahman demanded that "commercial contracts include clauses that require insurance and all goods are insured and even workers in these companies should be in the insurance system." He pointed out that "this procedure is beneficial to workers and employees, there are many ministries do not deal with their employees with insurance All kinds. "

"Today, there are three government companies (the National Insurance Company, the Iraqi Insurance Company and the Reinsurance Company) and there are 33 private insurance companies," he said.

He stressed that "the insurance sector and in order to promote it, it needs legislation that requires the application of the insurance system and requires citizens, traders and importers to insure so that there is a real culture that benefits all citizens."

Insurance needs a revolution

"Iraq is one of the first Arab countries to operate in the insurance system and today it is in the tail of those countries. The reason is that at least after successive governments of the 1980s did not stand up to this important sector," said insurance expert Mohammed al-Faily.

"What Iraq is going through is a qualitative leap in the economy. There has to be a real insurance system. It is the government's task to prepare a major insurance boom in Iraq because it has a great financial service and to start with a comprehensive insurance conference that makes binding recommendations to insurance companies. Companies and branches of international insurance to convey their experience to Iraq. "

Ignorance in its laws and conditions

Usually the owner of a commercial or investment company and also the citizen is the beneficiary of the insurance service in Iraq, but it seems that they are largely unaware of the work of insurance companies in Iraq and its privileges.

"Most of the goods we import are insured from the countries of origin and we pay large insurance premiums in addition to the value of the goods shipped until they arrive in Iraq. When they enter, they lose the validity of the insurance, and we do not insure," said Murtada al-Saadi, one of the businessmen of Jameela Industrial Zone, east of Baghdad. On our goods in Iraq, there is no follower or rather we do not want to pay additional amounts on the contrary in the countries of origin are forced to pay. "

Al-Saadi pointed out that "recently started the procedures of insurance on some goods and even shops and stores, but these procedures are routine and do not rise to the level of insurance operations, which we see and touch in countries outside."

Reason for refusal of insurance

Fouad Mansour, an employee of the Ministry of Higher Education, told Al-Ghad Press that "in the 1980s I had secured my residence and my car, and my salary was deducted from my monthly salary, which I received from the ministry on time. After 1991, "It is unreasonable to continue this system because of the poor living conditions and the financial distress we are experiencing and the high prices and these conditions are still ongoing, and I think that is why citizens are reluctant to deal with insurance companies."

He added that "now I do not know what the laws of the insurance companies and how to apply to them, so the highest priority to begin to identify the work and how possible for a simple citizen at least to apply for and benefit from its features, especially as its work is one of the elements of the country.

Only 17% are employed by the insurance sector

Some of the managers of insurance companies believe that Iraq is an attractive environment for industry, trade and investment, but most traders are losing millions of dollars in goods due to arson, violence or theft, without insurance as is customary in all countries. Some of their businesses go without compensation. Those who are exposed to terrorist acts and even have been compensated do not pay 50% of the damage.

"Private insurance companies do not match the work of state-owned companies for a simple reason that successive Iraqi governments since 2003 have so far ignored the existence of these companies as new companies," says Bassem Abdul Nabi, a deputy chairman of an insurance company operating in Iraq. And this is why it is not stipulated in the contracts concluded by the various state institutions, especially large projects, to insure the insurance companies operating in Iraq. These are the negative aspects in the law regulating the insurance business and the investment law, which led to a recession in these companies and the loss of many opportunities for "She said.

Abdul Nabi said that "there is still a glimmer of hope where there is today a joint work with the state insurance companies in order to crystallize the success of this sector and there is a response by the administrations of these companies," noting that "a statistic prepared by specialized committees in the insurance companies to attract citizens to the system Insurance in the various companies operating in Iraq shows that only 17% of the general citizens believe in the work of these companies and this is due to the loss of insurance awareness and lack of confidence in the work of these companies as well as a clear absence of the Iraqi state to support those companies and urged citizens or state employees at least in the stage The current accreditation system is insurance".


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