Iraq faces growing challenges in protecting its special economic projects due to a significant insurance gap. Experts emphasize that insurance acts as a safeguard against unforeseen risks and supports national savings and economic growth. Yet, Iraq’s insurance sector remains underdeveloped. Oil revenues dominate the economy, limiting private sector participation. Moreover, public awareness of insurance benefits remains low.
The fire insurance gap poses particular risks for Iraq’s economic projects. Coverage currently falls below 12 percent, leaving many businesses exposed to potential losses. Analysts warn that without proper insurance, special economic projects remain fragile and vulnerable to financial disruptions. Consequently, improving fire insurance coverage becomes crucial to support sustainable development and protect investors.
Authorities in Iraq are considering reforms to strengthen the insurance sector. Proposed measures include encouraging private sector involvement, raising public awareness, and introducing incentives for companies to purchase comprehensive policies. By closing the insurance gap, Iraq can reduce project fragility and foster a more resilient economic environment.
International financial experts note that linking insurance with national development strategies can enhance Iraq’s economic stability. Expanding coverage in high-risk sectors, such as energy, construction, and industry, will secure investments and ensure continuity during unforeseen events. Additionally, training programs and technological solutions can improve risk assessment and claims management.
Overall, Iraq’s insurance gap challenges the success of special economic projects. Addressing these challenges will increase investor confidence and protect economic assets across the country. If Iraq closes this gap, its economic projects can operate more efficiently, attract investment, and contribute significantly to long-term growth.