Jordan: Central Bank to supervise insurance sector
Source: Middle East Insurance Review | Apr 2016
Jordan’s Cabinet has approved a recommendation by the services, infrastructure and social affairs ministerial committee to task the Central Bank of Jordan (CBJ) with regulating the insurance sector in line with international practices.
The decision stipulates that the transfer of the regulatory function to the CBJ is to be completed within a year, while the task of updating the regulatory framework for the insurance sector is to be completed within two years, the Jordan News Agency, Petra, reported. Updating of regulations will involve improving the financial solvency of insurance companies, developing clear and transparent criteria for solvency, and strengthening corporate governance requirements for insurance companies.
Regulations will also be developed to ensure the separation between the life and general insurance businesses for composite companies, and to implement prudential requirements with respect to the investment policies of insurance companies.
The Cabinet also said that a committee will be constituted to implement the various recommendations.
The insurance industry has been supervised by the Ministry of Trade and Industry since 2014, when the Insurance Commission was scrapped in a government austerity drive.