Jordan: Industry calls for establishment of independent insurance authority
Source: Middle East Insurance Review | May 2019
The insurance industry has told lawmakers that an independent supervisory body is the most appropriate regulatory body for the insurance sector because it would have specialist cadres qualified to oversee all financial, technical and legal matters of the sector.
Moreover, the Jordan Insurance Federation (JIF) argued that the state would not need to fund the independent body because its operations would be financed by the sector through a fee imposed on each policy issued by insurers, according to local media reports.
The subject of an independent regulatory body was raised during a recent meeting on the proposed insurance legislation between JIF representatives and the Committee on Economy and Investment of the House of Representatives. The Federation pointed out that the insurance industry had seen several changes in regulatory bodies.
JIF chairman Majed Smairat said among problems faced by the insurance sector, the lack of an updated insurance law is the most important. A draft law is at present before legislators. Currently, the insurance sector operates under the Insurance Regulatory Act of 1999. Thus, JIF has been stressing the urgency of accelerating the adoption of this law.
The meeting also discussed the formation of a committee for resolving insurance disputes and its constitutionality and functions. Other issues deliberated included setting motor insurance tariffs. The meeting was also attended by representatives from the Central Bank and the Ministry of Industry, Trade and Supply.
Jordan had established an independent insurance supervisory body, the Insurance Regulatory Commission, in early 2000. This was later scrapped when the government embarked on an austerity programme and cut public spending. The Ministry of Industry and Trade and Supply currently oversees the insurance sector. M