Insurance Industry: How to start it Kurdistan?

The insurance industry is one of basic sectors of economy which offers financial protection against potential losses and risks. Insurance companies provide policies that allow individuals and businesses to transfer the risk of potential losses to the insurer in exchange for a premium payment. In another way, Insurance is a contract between two parties, Insurer and insured. The insurer promises to pay compensation to insured. The insured is an individual or organization whose life, health, vehicle or property is covered by an insurer party. If insured losses then it’s the insurer’s obligation to pay the proceeds of the insurance policy.

The History of insurance industry dates back to ancient time. In 1901, an American archaeologist found a Hammurabi-era stele w in the city of Shush in Iran. Some codes has been written on the stele which set out repayment by a debtor of a loan to a creditor on a schedule.

Each insurance company has a different and special policy. However, Insurance policy is the contract that describes the circumstances, and conditions under which the insurer must compensate the insured for damages. Shortly the insurance policy the way how insurer must indemnify the insured and how the insured must pay premium payment or subscription payment.

There are more than 21 tpyes of insurance industry, but the most common types insurance coverage are auto insurance, life insurance and homeowners insurance.

Today, Insurance industry plays a critical role the global economy by providing financial protection to individuals and businesses, and by helping to manage risk and uncertainty.

The History of modern insurance industry in Iraqi Kurdistan dates back to 1936. When The Insurance Companies Act went into action in April 1936. In fact, It was the first Iraqi law passed to specifically regulate the insurance industry. Al-Churk company which was an Egyptian company was the first insurance company to set up the business in Kurdistan and Iraq.

How to start insurance industry in Iraqi Kurdistan

Setting up an insurance business in Kurdistan and whole Iraq can be somehow challenging task. It can also be a rewarding one If done right. With the necessary combination of knowledge, hard working,and commitment, you may be able open a successful insurance business in Kurdistan.

In this blog post, we will teach you a few steps you’ll need to take to get started.

1. Conduct Market Research:

Before starting the business, it is important to conduct market research to identify potential customers, competitors, and market trends. This will help you to determine whether there is a demand for your business and how you can differentiate company from others in the industry. And how you will competie with your competitors in the business.

2. Have Business Plan:

Havinga business plan is key for starting any new business, including an insurance company. Your business plan should outline your company’s mission, goals, products and services, target market, marketing and sales strategies, financial projections, and other important details.

3. Get the license

The first step in opening any business including insurance business in Kurdistan is obtaining a license from Kurdistan Regional Government. You need the license in order to legally operate in the Kurdistan.

List of the requirements for opening any company, including insurance business in Kurdistan:

1. Choose a name for your business, You can reserve your name online on the KRG’s Ministry of Trade website.
2. If you have partners, Have the list of your partners along with their ID’s and personal identification document
3. Choose who will be director of the company and prepare his/her ID’s and personal identification documents.
4. Your company must have a Lawyer, and sign a contract and obtain a no objection letter from the Lawyers Bar Association
5. Hire an Accountant and obtain a no objection letter from the Accountants Union
6. Official registration form of the KRG Ministry of Trade and Industry
7. Pay the fee
8. Have an office with with address
9. Open a bank account, in order to pay taxes and receive revenues.
10. According to latest regulations, 70% of Your business’s employees must be locals.

The application process may take 14 days, so it’s important to start the process as soon as possible.

4. Hire Staff

You will need to hire a team of experienced professionals to help you run your insurance company including, customer service representatives and maybe a translator if you can speak Kurdish or Arabic well. In addition, You have to have an expert in order to explain the current economic situation in the region.

5. Set up operation

You will need to set up your company’s operations, including office space, equipment, and technology systems. In addition, You need to develop insurance products that meet the needs of your the market and set pricing that is profitable.

6. Launch marketing and advertising

Finally, you will need to launch marketing and sales campaigns to attract customers and grow your business. Once Your insurance business is up and running, The best way to attract customers and grow your business is advertising, especially on social media platforms.

CONCLUSION:

Starting an insurance business can be a complex, devastating and challenging process. It takes time, energy and a good plane to have a reputation in the industry but with careful planning and preparation, it is possible to succeed in this exciting and dynamic industry.