Fri 22 Nov 2019
Evaluation of Iraqi Insurance Market

Authors: Dr. Aziz Ahmadzadeh, Vahideh Nourani, Fatemeh Azadbakht, Amir Bahrami, Dr. Noban Fashandi, and Ehsan Barin

Coordinator: Insurance Law Research Group


There is a viable environment to expand business activities among Iran and Iraq. It is because of the large number of Iranians who are living in or traveling to Iraq, same cultural and religious patterns in both countries, and also political supports of Iran’s government to Iraq’s government. These all make a perfect background to increase business trades between the two countries. In such a way, the insurance industry is one of the upleft sectors to increase business trades. This research project focuses on the recognition of Iraqi insurance market as a demanding environment to receive insurance services from Iran.

First, based on the available documents and interviews with the experts, some general information about Iraq has been explained and also country risk of Iraq has been analyzed. Then, insurance industry’s structure in Iraq has been evaluated, which consists of laws, rules, and regulations, supervisory authority, and also major players in this industry. Then, Iraqi insurance market, history of Iranian Insurance Industry’s activities in Iraq, and also development prospect of Iranian insurers’ activities in Iraq have been investigated. Finally, Iraq Insurance Law and also some of the related circulars and laws translated to Persian and added to this research as appendices 2 to 10, to clarify insurance activity environment for the Iranian insures in Iraq. Because of some reasons like war and insecurities, high degree of existing risks in Iraq, and similar risks, most of the insurers haven’t initiated their activities in Iraq. But, based on the results of the current research, it can be concluded that Iraqi insurance market is intact and has high potential for supplying insurance services.

Iraqi insurance requirements’ at the time of political stability and sustainable security (like the situation we had seen in Kurdistan region before) are different from their insurance requirements’ at the time of insecurity, escalation of terrorism or civil war, and situations like today. So, the insurer who likes to have services in Iraq must have the ability to recognize and separate these insurance requirements’ and present his services in any situation, any time.

Generally, we can say that at the time of sustainable security, potential benefit and selling of insurance coverage related to economic activities (property and liability insurance) is higher, and at the time of insecurity, potential benefit and selling of personal insurance (life and health) and social insurance is higher.

It is important to know that according to Iraq’s oil revenue and its redistribution in various ways among the Iraqis’, in cases which insurers present good services related to insurance necessities, the people has the power to purchase insurance; also, different types of health insurance and some types of life insurance has been present in the form of group insurance by contracting among principles and insured agents of public sector, based on Iraqi administrative structures. Of course, this needs to set-up some structures and administrative arrangeme