Iraq Insurance Diwan (IID) has raised guarantee deposit requirements for insurers, according to a media statement issued by the insurance regulator.
The amendment aims to enhance the financial strength of insurance companies and raise the level of protection of the rights of insured persons, the IID said.
According to the new instructions, published in the Official Iraqi Gazette, the minimum amount of security deposits to be placed with the IID by insurance companies has been raised, depending on the nature of each company’s activity and number of branches of business.
The amended instructions set the guarantee deposit amounts as follows:
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IQD2bn ($1.53m) for those conducting insurance business involving a single branch of business.
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IQD4bn for companies with two branches in general insurance.
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IQD5bn for those operating three or more branches in general insurance.
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Life insurance companies that conduct both life and general insurance business are required to deposit IQD5bn, regardless of whether they operate one branch or more.
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Companies engaged in both general and life insurance are required to deposit IQD7bn
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Reinsurance companies must place a guarantee deposit of IQD10bn
The instructions also stipulate that insurance companies must adjust their status within three years from the date of their publication in the Official Gazette.
This amendment is part of the efforts of the Ministry of Finance and the IID to strengthen oversight of the insurance sector, ensure the solvency of companies, and enhance their ability to fulfil obligations to policyholders—thereby supporting the stability and growth of the sector.