Iraq: Govt to merge the country's two state-owned insurers
Source: Middle East Insurance Review | Jan 2017
The Iraqi government is merging the country’s two state-owned insurers to form a stronger entity to better support the economy and put the merged entity in a strong competitive position vis-a-vis private insurers.
The Iraqi Insurance Diwan, which regulates the insurance sector, has announced the start of legal procedures for the merger of National Insurance and Iraq Insurance, reported Al Hayat.
Mr Mirza Majeed Murad, Managing Director of the privately owned insurer, Dar Al-Salam Insurance, said that the economic situation in Iraq is now going through a phase where it requires initiate practical steps to support the insurance sector which needs a large amount of capital.
He said that the merger of two of Iraq’s largest insurance companies is “a step in the right direction”.
An insurance industry expert said that the merger would reduce slack in the government sector, which is a serious step in the reform of the insurance sector. He added that the merged entity would attract the attention of international reinsurers. It would also draw attention to the Iraqi insurance market as a whole and provide an incentive for investments to enter Iraq.
He also said that the merger of the state-owned insurers “may encourage the merger of a number of private insurance companies”.