Gross written premiums for the insurance market in Iraq reached IQD142.7bn ($108.9m) in the second quarter of 2025 (April-June), against IQD100.3m in the corresponding period of the past year, registering an increase of 42%, according to a statement issued last week by the Iraqi Insurance Bureau (the Diwan), the insurance regulatory authority in Iraq.
Last July, the Diwan announced that the total insurance premiums collected during the quarter from 1 January to 31 March 2025 amounted to IQD128.8bn ($98.5m) compared to IQD109.9bn during the corresponding period of 2024, reflecting a growth rate of 18%. GWP for the first half of 2025 is estimated to be around IQD271.5bn.
The Diwan attributed the enhanced performance of the insurance market in 2Q2025 to the recovery of business activity and the improvement of the investment environment in the country.
The statement said that four insurance companies controlled 72.28% of the market GWP in the second quarter including Iraq Insurance (27.11%), National Insurance (20.69%), Al Hamra Insurance (16.84%), and Asia Insurance (7.64%).
Another nine insurers held 21.69% of the market premium income, while the remaining operators wrote 6.31%. According to the Diwan website, there are 39 providers operating in the Iraqi insurance market, including one national reinsurer.
Market grows by 18% in 2024
In October, the Diwan announced that GWP in the Iraqi insurance market grew by 18% in 2024, reaching IQD469.4bn ($358.4m) compared to IQD417.6bn in the previous year, boosted by increased demand for life, engineering and accident insurance, while agricultural insurance remained limited.
Paid claims in 2024 reached IQD127bn, or 27% of the total premiums, compared to 29% in 2023. The relative decrease is attributed to improved underwriting, a decrease in the number of accidents, and improved risk acceptance standards by some insurers.
Market share
Four companies dominated more than 79% of the market in 2024. They were:
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Iraq Insurance Company, 29%, supported by an extensive network involving life insurance and loans.
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National Insurance Company, 26%, a leader in general insurance, especially in the energy and property insurance branches.
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Al Hamra Insurance and Asia Insurance: 12% each, as a result of the expansion of their activities in various insurance services.
The rest of the market shares were distributed among small and medium-sized insurance companies, which faced challenges, most notably, weak capital and limited reinsurance, which constrain their ability to compete.
In 2024, the insurance sector recorded a net profit of IQD69.2bn, an increase of 10% year on year. Profitability was driven by improved risk management, lower claims, reduced technical losses and higher investment income. Investment revenues reached IQD298.8bn in 2024, an increase of 24% compared to 2023.
The Diwan indicated that the contribution of the insurance sector to the GDP in 2024 amounted to 0.129%, with an average of IQD10,180 per capita spent on insurance, noting that the lack of an insurance culture and weak capital limited market growth.