Insurance incentives (tax allowance) and their impact on increasing insurance rates in Iraq: an accounting analysis

Abstract

This research aims to analyze the impact of tax-related insurance incentives on increasing insurance enrollment rates in Iraq. It examines the accounting and tax framework governing insurance activity and explores the potential for tax policy to be used as an incentive tool to support the spread of insurance and enhance its economic and social role. The research stems from the problem of low insurance rates in Iraq compared to similar economies, weak insurance awareness, and the absence of direct tax incentives to encourage individuals and institutions to participate in insurance programs. The research employs a descriptive-analytical approach, supported by inductive reasoning, to analyze the tax and insurance legislation in force in Iraq. It also reviews previous studies and relevant official reports. Furthermore, accounting analysis is used to demonstrate the impact of tax-related insurance incentives, such as deducting insurance premiums from taxable income or granting partial tax exemptions for insurance subscriptions, on the behaviour of individuals and institutions and the level of demand for insurance services.