He added, "I have been a customer of the government company for years, and I receive compensation for the damages incurred on my company assets according to the contract signed between us."
Experts believe that "the weak activity of private insurance companies is due to the fact that Iraqi government departments require that the private companies with whom they deal have insurance contracts from state-owned companies, not [private] ones."
Mahmoud says that there is significant activity by the private insurance companies, but they need encouragement from the state. He said, "In one case, a large commercial complex in the New Baghdad district caught fire, and it was found that a shop owner in the complex had insured his assets with the private company RED."
He added, "The shop owner received compensation from the company for the damage incurred by the fire. He hung a large banner at his shop door saying that the insurance company paid him the compensation owed."
Omar al-Shaher is a contributor to Al-Monitor’s Iraq Pulse. His writing has appeared in a wide range of publications including France’s LeMonde, the Iraqi Alesbuyia magazine, Egypt’s Al-Ahaly and the Elaph website.