The Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, has articulated a significant government initiative aimed at revitalizing Iraq’s insurance sector. This development was announced on Friday, reflecting the government’s commitment to enhancing financial protection mechanisms within the nation.
Saleh emphasized the necessity of fostering an insurance culture in Iraq, noting that this effort must take into account several interrelated factors, including the dynamics of the macroeconomic environment and societal attitudes towards insurance. He highlighted the need for a comprehensive review of existing legislation, along with the strategic implementation of tax incentives for both companies and individuals opting for insurance. Furthermore, the support of small and medium enterprises in developing innovative insurance products tailored to market needs is essential.
“It is crucial to design insurance products that cater to diverse demographics,” Saleh stated. He pointed to potential offerings such as agricultural insurance and disaster coverage while noting the public’s demand for compulsory car accident insurance. Although mechanisms for such insurance exist, awareness remains limited, underscoring the gap in mandated insurance within the country. The Prime Minister also mentioned the importance of boosting citizens’ confidence in non-banking financial institutions, particularly within the insurance sector, as a means to foster overall growth and integration into the national economy.
Addressing societal challenges, Saleh remarked that varying levels of purchasing power compel many citizens to prioritize immediate needs over future financial planning. He attributed this phenomenon to longstanding factors, including the repercussions of wars, conflicts, and economic upheavals experienced in recent history. A notable decline in insurance culture has limited the sector’s development, primarily due to a lack of understanding regarding the benefits and significance of insurance as a financial safeguard. Traditional reliance on family and community support in navigating risks further inhibits the adoption of formal insurance solutions.
He emphasized the urgent need for comprehensive awareness programs targeting youth and various business sectors, aimed at enhancing trust between consumers and insurance providers. Additionally, improving service levels and expanding the array of options available from current insurance companies are critical steps. The incorporation of digital technology is also a priority, facilitating greater accessibility to insurance services for customers.
Moreover, Saleh underscored the importance of fostering collaboration between the government and the private sector in the insurance domain, viewing these partnerships as essential to the next phase of financial and economic reform outlined in the governmental agenda.
In conclusion, there exists a robust governmental strategy focused on advancing the insurance sector, which is viewed as fundamental to the financial well-being of individuals and society as a whole. This initiative is anticipated to positively influence Iraq’s national economy and contribute to a more stable financial market by mitigating risks and promoting financial resilience.