Analysis of the Relationship Between Premiums and Compensations in Life Insurance: An Applied Study on the Iraqi General Insurance Company

Abstract

This research aims to analyze the relationship between collected premiums and paid compensations in life insurance, with a focus on identifying the role of the Iraqi General Insurance Company in developing this vital sector. The research deals with a comparative study between individual and group insurance, highlighting the marketing procedures followed and the characteristics of each type. Financial data for the period from 1999 to 2008 were analyzed to evaluate the growth rates in premiums and compensations, and measure the strength of the correlation between them using the SPSS program. The differences between the average premiums and compensations for each type were studied during the study period, and the research reached several main results, including the presence of a positive and strong correlation between collected premiums and paid compensations in both types of insurance, in addition to a difference in demand for individual and group insurance due to economic and security factors. The research also showed relative stability in the company's performance thanks to its studied marketing strategies.