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Insurance Industry in Iraq Brief overview January 2011

Insurance Industry in Iraq Brief overview January 2011. Insurance Legislation. These regulations apply to all insurers, reinsures, agents and intermediaries practicing insurance business in Iraq, whether publicly, privately, Domestically or foreign owned.

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Insurance Industry in Iraq Brief overview January 2011

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  1. Insurance Industry in Iraq Brief overview January 2011

  2. Insurance Legislation These regulations apply to all insurers, reinsures, agents and intermediaries practicing insurance business in Iraq, whether publicly, privately, Domestically or foreign owned.

  3. The Iraqi Insurance Diwan (IID) under the Ministry of Finance • The IID was established and its powers were set out under the Insurance Business Regulation Act 2005. • The IID sets the overall policy and procedures for the regulation of the insurance industry in Iraq. Regulatory Body

  4. Required Statutory Insurance • Construction All Risk Motor • * Other insurance types are not regulated by law, such as Employers' Liability, Workers' Compensation, Travel insurance, Pollution, Environmental liability, etc…

  5. Requirements to provide insurance services in Iraq • The law states that all insurance activities in Iraq must be carried out by insurance companies licensed by the IID. • Licenses are granted by the IID and they are issued yearly and must be renewed. • The IID has the power to suspend and cancel licenses in the event of any breach of insurance regulations. • An insurer or re-insurer must be one of the following:- Iraqi public company - Iraqi private or mixed joint stock company - Branches of foreign insurance companies registered in Iraq - Takaful and Retakaful insurance entities • Foreign companies may set up a branch in Iraq or acquire a shareholding in an existing Iraqi company.

  6. Validity of insurance contracts • Any insurance contract concluded by an unlicensed insurer shall be deemed invalid. • This invalidity may not be invoked as a plea against the insured or the beneficiary who concluded invalid contracts in good faith. • No license that combines life insurance business and general insurance business may be granted. • The license to practice life insurance business automatically authorizes the practicing of health and personal accident insurance. • No insurer may practice any type of insurance except the type that it is licensed for.

  7. Capital Requirements For Insurance Companies The Minimum Guarantee Fund should not be less than: • ID 500,000,000 ($395,000/£290,000) for an insurer authorized to write general insurance. • ID 750,000,000 ($592,908/£435,000) for an insurer authorized to write life insurance. • ID 750,000,000 ($592,908/£435,000) for an insurer authorized to practice general and life insurance. • ID 1,000,000,000 ($790,545// £580,000) for a reinsurer. *ID=Iraqi Dinar

  8. Insurance Companies* in Iraq 18 privately-owned insurance companies Three State-owned companies In practice, foreign insurance companies are known to be writing insurance contracts in Iraq without having obtained proper approvals by the IID. Please contact one of our Iraq team leaders for further details in this regard. *As published by the IID up to January 2011

  9. This presentation contains a random selection of information. This presentation and its content should not be taken, and are not intended to be taken, as a legal advice by any recipient or reader. Al-Jad does not provide any warranties or guarantees in relation to any information or material provided in this presentation. Should you wish to receive formal legal advice, please contact one of our team leaders. • www.al-jad.com

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