Dr. Ali Dadoush – Economic Researcher
The concept of insurance represents a safeguard against unforeseen future events, working to mitigate anticipated material and financial losses resulting from disasters that individuals cannot cover, bear, or determine in scale and consequences. Branches of insurance have expanded according to the types of incidents and risks expected, such as: life insurance, work stoppage coverage for individuals or economic enterprises, protection against civil liability risks, property insurance, agricultural crop insurance, and other forms depending on the nature of potential risks.
Insurance plays an important role in both economic and social activity. It constitutes one of the largest and most important savings vehicles in any economy, through the collection of premiums, surpluses, accumulated capital, and reserves, and then investing them across various fields and economic activities. Ultimately, insurance achieves its primary purpose: sustainable economic development. The process is carried out through insurance companies, which hold great importance in economic activity as large financial institutions that aim to achieve economic welfare while providing social services to individuals by protecting and insuring them against various risks.
Iraq is heavily dependent on oil rents—indeed, it is a classic rentier economy. This dependence has weakened other sectors and economic activities, including the insurance sector, which has been a marginal concern for Iraqi economists. It has received little attention either before or after 2003, with contributions limited to brief observations and passing references. The neglect of this vital sector was further entrenched by the lack of a genuine private sector capable of boosting productivity in non-oil sectors, as well as by the weak role of insurance institutions and associated culture in public life and financial activity.
The Iraqi insurance sector deserves special attention given its productive role in compensating individuals, families, and enterprises (including investment projects) for material damages and losses, as well as its investment role through the pooling of insurance premiums.
Within this context, the problems of Iraq’s insurance sector—particularly in relation to fire insurance—are reflected in two. Weak insurance coverage, represented by the fact that fewer than 12% of private enterprises are insured against fire, the absence of mandatory insurance requirements from the government or municipalities (the relevant authorities), and the insufficient activation of state-owned insurance companies such as the Iraqi Insurance Company. This is in addition to the limited reach and influence of private insurance firms.
Hence, the importance of this paper lies in its attempt to evaluate the current state of economic insurance in Iraq, diagnose the gaps in private-sector fire insurance, and present practical proposals for developing an effective and sustainable insurance system. This would provide policymakers with actionable recommendations to safeguard the national economy.
