He said, “Insurance is like a form of compulsory saving. It is as if you were deducting 5% of your income and paying it to the insurance company for ten years. In the event you had an accident the next day after signing the insurance contract, your family will immediately receive 5% of the income of the head of the household multiplied by ten years.”
“If the insured person does not get into any accidents, after the insurance policy expires, he can recollect the accumulated amount from the company,” he added.
In Iraq, there are three governmental companies and about 30 civil insurance companies, yet the National Insurance Company insures the largest percentage of people.
An executive director of a car company in Baghdad said that "the activity of private insurance companies that are specialized in small businesses is negligible." Requesting anonymity, he added: "I went to a private insurance company to receive insurance for my company assets. I found out that the value of my company's assets is almost 50 times higher than that of the insurance company."
He said, "They offered to re-insure my assets through another company with capital higher than these assets. But this increases the cost of insurance, so I chose the National Insurance Company and signed with it."