Insurance law firm Bond Pearce has called on the government to help the UK insurance industry cover workers and businesses in Iraq.
A wave of recent kidnappings and the ongoing sporadic bombing campaign by Iraqi insurgents has seen insurance premiums soar to the point where insurance and security costs are now estimated to represent half the total cost of doing business in Iraq for international firms.
Premiums have more than doubled this month and for many the increased risk is too much, with international contractors starting to pull out.
Ian Martyn, head of Liability Insurance at Bond Pearce, said: “Underwriters are still quoting but the premiums across all areas of cover are going up and insurers are starting to cap their losses.
