The Impact of Political and Economic Changes on the Insurance Industry in Iraq

Abstract

Although the insurance industry in Iraq has been relatively less developed compared to other Arab countries, it has experienced significant expansion, particularly due to the implementation of reforms in the sector. Nevertheless, the political and economic transformations in the country have profoundly influenced the insurance sector. The study discovered a strong association between the financial indicators of the insurance sector and the economic, political, and security conditions in the country during different research periods. As economic and political conditions improved, this positively affected the output of the insurance sector, which saw a gradual increase in its production volume and its contribution to GDP. This was evident during the first and second periods. When crises and negative political changes occurred, the activity of the insurance sector declined. The study recommended the need to increase attention to the insurance sector by stimulating the work of insurance companies, expanding types of insurance, and increasing investment levels to increase profits. It also recommended activating insurance participation for individuals and business sectors by expanding insurance awareness and clarifying the importance of referring to insurance companies for various economic activities to reduce the risks that a person may be exposed to personally.