Presentation to Iraq Finance
Dubai, January 2014
Jonathan Biles
Chief Executive Officer
Introduction to Iraq Gate (1)
•
Founded in 2008
•
Highly experienced and proven in Iraqi insurance market
•
An Iraqi company with offices in Baghdad, Basrah and Erbil
•
Fully Registered, Authorised and Regulated by the Iraq Insurance Diwan
•
Allows full compliance with local insurance law while also ensuring transparent pricing
and quality of coverage
•
A broad selection of relationships with Iraqi, regional and international insurance and
reinsurance companies including Lloyd’s of London
•
Excellent relations with all other Iraqi insurers (state and private) allowing use of any
local market
•
Partnerships with leading specialist brokers in London and elsewhere allowing the
most sophisticated products to be deployed combined with local service
•
Fully capable of and experienced in working with any London and other international
brokers on reinsurance marketing as may be required or preferred by clients
Introduction to Iraq Gate (2)
•
Iraq Gate is led by Jonathan Biles, an experienced insurance broker with over 20
years experience in the industry and considerable knowledge of the Middle East in
general and Iraq and Iraqi Kurdistan (“KRG”) in particular
•
Iraq Gate offers clients international service levels and levels of product
sophistication and security together with full compliance with Iraqi law:
–
–
–
–
•
24/7 customer service on the ground in Iraq from 3 offices
Claims handling, surveying and servicing
Liaison with Iraqi Government and regulators across all ministries and government bodies
Added value at all levels when operating in Iraq
Iraq Gate has experience of dealing with clients in Iraq in the fields of:
–
–
–
–
–
–
–
–
–
Professional Services (PWC)
Oil & Gas (Oilserv, ENI, Gazprom, Kogas, Petronor, AGC Drilling, NAPESCO)
Government entities (UN Iraq Ops, US Embassy Baghdad AEBEA)
Healthcare (HT Hospitals)
Power Generation (Luthardt, Al Bilal Group)
Security (Near East, Al Murabit Security, Anticip)
Manufacturing and Trading (Daimler AG, Qualtra)
Construction (Harlow International, Rasheed Hotel, Iraq Energy City)
and many others
•
Oil & Gas
–
–
Full Range of Upstream and Downstream Coverages
During exploration phase - Operators Extra Expense Insurance ("OEE") covering:
•
•
•
–
•
All risks of physical loss or damage to insured assets
Cost of well control, redrill, clean up costs
Third Party Liability including pollution liability excess of b) above, up to an agreed limit.
Equipment in transit/storage up to an agreed limit.
Business Interruption
Workmen’s Compensation Insurance
Construction/ Power Generation and Distribution
–
–
–
–
–
•
•
•
•
•
•
•
All risks of physical loss or damage to project works during project period plus 12 months maintenance period
Third party liability
During production phase (including additional development drilling) - Operational Insurance Package ("OIP") covering:
•
•
•
•
•
–
Cost of well control, redrill, clean up costs up to an agreed limit.
Third Party Liability including pollution liability excess of above
Equipment in transit/storage
During field development phase - Construction All Risks Insurance ("CAR") covering:
•
•
–
Iraq Gate Products
Construction All Risks (“CAR”)
Erectors All Risks (“EAR”)
Cargo
Delay In Start Up (“DSU”)
Decennial Liability
Directors & Officers
Bankers Blanket Bond, Cash in Transit and other specialist banking coverages
Personal Accident including tailor made coverages for high risk operations
Liability (including for demining)
Cargo
Political Risks, Political Violence and “Investor Insurance”
War & Terrorism
Insurance and Banking
•
The increasing attractiveness of Iraq to international banks such as Standard
Chartered is good news for the Iraqi insurance industry
•
The appointment of bankers with international experience to senior positions in
domestic banks such as Bank of Baghdad is also to be greatly welcomed
•
Banks like to see their clients insured – it improves their security and hedges
their risk position
•
Oil companies have recently been the major drivers of insurance uptake among
Iraqi companies as they have insisted on a full suite of insurance coverages to
protect themselves from risk
•
Development of the Iraqi economy depends on the growth and development of a
vibrant private sector – the development of the banking and insurance sectors
working together will assist this development
•
Without the development of a successful private sector creating jobs and
generating tax revenues the Iraqi state will continue to rely almost entirely on oil
revenues to support itself which cannot be a desirable objective
Regulation
•
The disappearance of insurance revenues from the country is in part a
consequence of miscommunication or misunderstandings regarding the
regulatory position
•
Our Diwan says ““no unlicensed (by the Insurance Diwan) foreign or local
insurance company can operate in insurance business inside Iraq, or insure
money or properties inside Iraq by those unlicensed insurance companies.
Also, no unlicensed (by the Insurance Diwan) insurance broker or agent can
transfer money or property insurance documents from inside Iraq to
Insurance companies operating outside Iraq or to unlicensed (by the
Insurance Diwan) Insurance companies operating in Iraq.”
•
Lloyd’s of London says ““The insured can place business with a nonadmitted insurer either directly or through the use of an intermediary,
outside the territory”
•
With this level of conflict between regulations it is hardly surprising that the
development of the insurance industry in Iraq is slow
Oil & Gas Insurance
•
The Insurance premiums of IOCs operating in Iraq is a “Petroleum
Cost” and is therefore paid by the Government of Iraq
•
Iraq has both insurance companies and reinsurance brokers fully
capable of handling the underwriting and risk transfer of the Energy
risks presented by IOCs operating in Iraq
•
Why then is the reinsurance of these risks handed directly to London
brokers with no involvement in the development and success of the
Iraqi financial services industry?
•
Many millions of Iraqi dollars are flowing directly to London when
there is an opportunity for taxpaying Iraqi employers to participate in
the risk
•
This is an example of a missed opportunity in the development of the
Iraqi financial services industry
Conclusion
• The insurance industry in Iraq is strong but could be
stronger
• Clients can now buy any insurance product in Baghdad or
Basrah that they can buy in Dubai or London
• The insurance industry will greatly assist in the
development of a vibrant private sector and adds value to
the financial health of the Iraqi economy
• A more thorough understanding of what we currently do,
not to mention what we can do and what benefits that
would bring to Iraq would be appreciated!
Contact Points
For further information, guidance or support please contact:
Jonathan Biles
Chief Executive Officer
Iraq Gate Insurance Brokers LLC
Al-Kawakib Building, Al-Magrib Street, Baghdad, Iraq
Tel: +964 7806 822 441 (Baghdad)
Tel: +971 556 128 565 (Middle East)
Tel: +44 7823 559 079 (Global)
Email: jonathan.biles@iraqgateinsurance.com