Insurance and Credits
Economic 03/26/2025 Yasser Al-Mutawali Article 45 of the current budget law stipulates that open documentary credits must be insured within Iraq. This procedure means that
when the state or individuals import from abroad,
the imports must be insured by companies in the country within Iraq.
This decision reflects the government's interest in activating and stimulating the insurance sector, given its
significant role in maximizing financial resources, on the one hand, and
in bearing risks in a balanced manner across economic sectors as a whole, by distributing them fairly.
Continuing our previous article titled "Insurance and Risk,"
it can be said that the Central Bank of Iraq has
circulated this order to banks and
called on them to implement it,
indicating
its support for this important decision.
However, it is noticeable that the
response from banks has been very weak, so
coordination between insurance companies and banks is required to ensure the full success of this decision.
The current government, in its efforts to support the insurance sector, is attempting to revitalize this vital and important financial sector.
These measures may be a response to what we raised here in Al Sabah newspaper, given the difficulties this essential sector is facing.It is clear here that
there is unfortunately a lack of insurance culture
,
for which the insurance companies themselves and the economic media bear responsibility.
It is worth emphasizing here that , in
this measure
will contribute to maximizing the budget's financial resources addition to
preserving the hard currency that goes to international insurance companies in the insurance process.
The benefit of the domestic insurance decision will therefore be to stimulate important economic sectors, such as insurance companies and banks, while providing many job opportunities in this field,
thus alleviating the widespread unemployment among young people.
Here, I believe that a partnership should be created between reputable Iraqi insurance companies and international companies, with the aim of benefiting from each other's expertise,
similar to the partnership between our banks and correspondent banks, to ensure profitability from the outset.
We ask: What role does the Iraqi insurance company play in these changes?
It used to play a major role in insuring imports and exports and investing funds domestically and internationally.
In a related context, the government's support for this sector was not limited to requiring documentary credit insurance, but
this interest was also reflected in the new health insurance law, which encouraged insurance companies to issue insurance policies for expatriate and resident workers.
Thus, insurance companies will flourish again, but insurance companies are required to work on developing their workforce, given the expertise required by these insurance products, especially in the era of digital transformation.
This is a shared responsibility in cooperation and coordination between the Insurance Bureau and government insurance companies. Both private and public.
https://alsabaah.iq/112251-.html