Iraq - The Economic Situation Does not Afford Entry of New Insurance Companies
Monday, 07 04 2016, Category: Insurance and Reinsurance, Country: Iraq
Insurance companies play a significant role in the economy in general through its coverage of all insurance risks, whether individuals or groups. However, the situation in Iraq may differ because of the previous and current circumstances, and the clear absence of public insurance awareness which has manifested itself since the nineties and its effects are still reflected on the public and private sectors insurance companies through a decline in the sector despite the increase in private insurance companies. In this regard Mr. Saadoun Mashkal, a specialist in insurance affairs, stressed that the current economic situation in Iraq does not afford the entry of more private insurance companies into the market because it will affect the equal competition between these companies.
Mr. Mashkal added in an interview with Al-Sabah that the entry of more insurance companies will affect the prices of the insurance coverage and documents.
Furthermore, the companies will be short on securing equal or nearly equal salaries to their employees because part of the money will be allocated to covering competitive offers and this in turn will reflect on the quality of services.
Source: Nahrain News Agency