Jordan: Bill amending insurance law passes in Lower House
Source: Middle East Insurance Review | Apr 2020
The House of Deputies or Lower House has endorsed a Bill to update the insurance law, the Petra News Agency reported.
The draft law comprises 111 articles discussed during six legislative sessions, and which, when passed, would enable the Central Bank of Jordan (CBJ) to supervise and monitor the sector in accordance with best global practices. The draft law also affords the CBJ the authority to deal with struggling companies.
The CBJ will prepare the regulations to give effect to the law, in cooperation with the Jordan Insurance Federation (JIF), the Jordan Association for Medical Insurance and other concerned institutions.
This would ensure governance rules for insurance companies and service providers, improve financial solvency of insurance companies, setting clear standards for their control, and regulating licensing procedures for insurers and their ownership.
The new law will require separation of life and general businesses for companies that offer these two types of insurance.
At present, the insurance industry is supervised by the Insurance Directorate under the Ministry of Industry, Trade and Supply. M