The insurance sector in Jordan has huge potential, with active regulatory reforms that will strengthen insurers' performance, especially when backed by technological developments, which will open the door for the country to become a regional hub, the governor of the Central Bank of Jordan said.
Dr Adel Al-Sharkas, governor of the Central Bank of Jordan (CBJ), in his keynote address at the opening of the AqabaConf 2025 conference yesterday, said that GWP in the country increased by almost 6% to $1.1bn in 2024, equivalent to 2.1% of GDP. The pace of growth exceeded the Arab average of 1.6%. “These figures confirm that the insurance sector in Jordan still holds significant opportunities for future growth, especially with the rise in insurance awareness and the adoption of modern technology in service delivery.”
Dr Al-Sharkas added that since assuming the task of supervising insurance companies in 2021, the CBJ has dedicated its efforts to implementing a set of measures to develop the sector, including reviewing and amending the legislation governing it to ensure that it aligns with international best practices.
He said, “The Bank has developed a well-thought-out plan to restructure the sector through carefully designed measures to address weaknesses, build strong insurance entities capable of competing and growing, keep pace with developments in financial technology, attract and develop trained human resources, and provide innovative services and products that ensure the protection of citizens' rights.”
He added that the rationale for the proposed new insurance law has been approved, providing a comprehensive reference for the principles and provisions for insurance contracts at all stages, from pre-contracting to implementation.
Dr Al-Sharkas said, “The law sets clear rules defining the obligations of both parties to the contract, detailing the basic elements of the insurance contract, such as the insurable interest, insurance risk, insurance premium, insurance term, and other essential components. This is in line with the Economic Modernisation Vision 2023-2033 for the financial services sector.”
More needs to be done at the regional level
Citing data from the Arab Monetary Fund which indicates that the GWP in the Arab region reached around $50.8bn in 2023, achieving a growth rate exceeding 9% compared to 2022, Dr Al-Sharkas noted that more needs to be done to develop the Arab insurance industry. Greater focus also has to be given to applying technology.
Dr Al-Sharkas said that despite the growth of the Arab insurance market, insurance premiums represent only 1.6% of Arab countries' GDP, compared to 6.8% globally. This disparity highlights the need to expand the sector's base and enhance its economic role by reshaping its operating models and adopting advanced technology, such as artificial intelligence, big data analytics, and blockchain. These tools contribute to improving the accuracy of risk assessment, accelerating underwriting procedures, streamlining claims settlement, and enhancing the customer experience with superior quality.”
A regional tech-hub
In line with the growing importance of technology in the insurance sector, Jordan is moving forward to accelerate digital transformation and position the country as a leading regional hub and an ideal investment destination in FinTech. This is in line with the objectives of the Economic Modernisation Vision 2023–2033.
Dr Al-Sharkas said, “The insurance sector represents a fertile environment for technological development. The Central Bank is currently working to establish the necessary regulatory framework for licensing electronic insurance platforms. It is also developing the legal framework to keep pace with technological developments and contribute to the development of this vital sector.”
Held with the theme 'Bridging the Insurance Future with Technology', the conference that ends today has attracted over 1,300 delegates from 33 countries. The AqabaConf series was launched in 2008 as a biennial event attracting guests from various regional and international markets.