The Insurance Bureau (Diwan), the insurance regulatory body in Iraq, announced the implementation of the pilot project for climate risk insurance, which is the first of its kind in Iraq and the region.
According to the Diwan website, the project aims to provide insurance coverage against climate risks (sudden heat waves, climate and drought incedients). The project includes the categories of peasants and the poorest farmers; in addition it defines the geographical scope to include the governorates of (Karbala and Nineveh) by granting loans to the aforementioned categories of farmers for agricultural purposes in both its aspects (plant and animal) and in cooperation with the World Food Programme and the Ministry of Agriculture.
The insurance coverage will be provided by Asia Gate Insurance Company, which is the first time for a private Iraqi insurance company to undertake insurance coverage for this type of insurance.
The importance of the project is in providing financial services to the largest possible number of segments of society in order to achieve financial inclusion, which requires the provision of special insurance coverage, that is microinsurance.
The Diwan said that this type of insurance aspires to enhance early action to confront any climate disaster and increase the pace of recovery in order to restore livelihoods and rebuild vital infrastructure so that people and local communities can rise again.