Dr. Sanaa Abdel Qader Mustafa /Arab Academy in Denmark / Head of the Department of Economics, Financial and Banking Management
The development of a country’s national economy is often measured by the advancement of its insurance sector. Insurance plays a critical role in managing industrial facilities and projects while serving as a significant source of savings and investment for various sectors of the national economy. Despite its importance, the issue of insurance—particularly the insurance of industrial projects and facilities—has not received adequate attention in the programs of Iraqi political parties or their electoral platforms since their inception in the mid-1930s. Even the Iraqi Communist Party, which initially focused on employment issues, did not prioritize the development of the insurance sector.
Since the establishment of the Iraqi state and its institutions, this sector has remained largely overlooked, with only minimal references to social security and a notable lack of scientific analysis. Successive governments in Iraq have also failed to prioritize insurance, neglecting to adopt comprehensive laws, regulations, decisions, or guidelines to advance the sector. Instead, the focus of insurance professionals has been confined to technical matters, leaving the economic potential of this sector largely untapped for fostering investment and economic development in the country.
Furthermore, academic research on insurance in Iraq remains underutilized. Studies conducted by postgraduate students—whether at the higher diploma, master’s, or doctoral levels—are rarely published and often remain shelved in university libraries.
Given these shortcomings, this article aims to concentrate specifically on the insurance of industrial facility projects in Iraq, addressing this critical yet underexplored topic.
Even the National Insurance Company, established in 1950 under Law 56 and widely regarded as Iraq’s leading insurance company, has not placed significant emphasis on insuring industrial facilities. The company’s mission is stated as:
“Serving the Iraqi community and preserving the economy and national wealth by encouraging the labor market through providing various insurance coverages. This ensures security and reassurance for businessmen, thereby increasing their investments within the country and contributing to the reconstruction of our beloved Iraq.”
Despite this mission, the company has not demonstrated a particular focus on insuring industrial facilities. This is surprising given its stated objective to:
“Contribute to economic development through its insurance, production, and investment activities by providing insurance protection for members of society and national wealth. This positively impacts the national economy by encouraging the investment of funds through solid insurance coverage, offering protection against various risks, and restoring the insured to their pre-risk state. This aims to achieve the highest possible level of economic growth while also spreading awareness of insurance and preventive measures to benefit the national economy.”
The company’s official objectives further highlight this gap:
First: The company engages in all types of general insurance (marine, fire and accident, automotive, agricultural, and engineering), life insurance, and reinsurance. It also provides consultancy on insurance-related matters.
Second: The company invests its funds across various areas, such as real estate investments, deposits and transfers, participation in company shares, and real estate lending. The commissions provided by the company to its official and private marketing agencies vary based on the type of insurance and the marketing channels used.
However, a review of these objectives reveals no explicit mention of insuring industrial projects in the public, private, or mixed sectors. This omission reflects a lack of attention from company leadership toward insuring the industrial sector or investing in industrial projects that could support the growth of Iraq’s national economy.
The importance of this paper lies in addressing this critical issue and highlighting the role of the industrial sector in Iraq as one of the key pillars of the national economy. The paper seeks to illuminate the challenges facing the development of Iraq’s industrial sector, particularly in securing industrial projects in the public, private, and mixed sectors against various risks.
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