Jordan: Insurers renew call for motor premium hikes
Source: Middle East Insurance Review | Feb 2018
Insurers should be allowed to increase motor premium rates and have the right to price annual premiums for compulsory motor third party liability insurance themselves, said Mr Maher Al-Hussein, Secretary General of the Jordan Insurance Federation (JOIF).
This has been a constant refrain from insurers for several years.
Mr Al-Hussein raised JOIF’s longstanding proposals at a meeting with the Integrity and Anti-Corruption Commission.
He said that cumulative losses suffered by insurers in this class of business has exceeded JOD250 million (US$352.6 million) since 2000.
He added that the hikes in premiums rates should include a profit margin of 5-7% for motor insurers, according to local media reports.
Mr Al-Hussein revealed that the number of motor accidents annually in Jordan ranges from 120,000 to 130,000. The vehicle population in the Kingdom exceeds 1.5 million.
He pointed out that less than 10% of the vehicles were involved in accidents.
He said insurers have two options: raise premiums on all motor insurance policyholders or impose on those with poor driving records.
In 2016, the Ministry of Industry, Trade and Supply assured JOIF that it would conduct studies into losses in compulsory third-party motor insurance and find solutions to the issue that would satisfy all parties. M
JOD1 = US$1.41