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May 2021

Jordan: COVID-19 causes 3.5% drop in total premiums in 2020

Source: Middle East Insurance Review | Apr 2021

Total premiums in Jordan fell by 3.5% last year to JOD594m ($837.8m), compared to JOD615.3m for 2019, according to official data issued by the Insurance Department of the Ministry of Industry, Trade and Supply.
 
Of the total, general premiums stood at JOD501.7m last year, a decline of 5.3% compared to 2019. The fall was attributed to the impact of the COVID-19 pandemic that led to a decrease in the total premiums of vehicle insurance by 8.8%, medical insurance by 5.9%, and aviation insurance by 39.6% last year.
 
On the brighter side, total life premiums reached JOD92.3m in 2020, growing by 7.7% from JOD85.7m in 2019.
 
The data also showed a decrease in total insurance payouts of 16.1% to JOD411.1m last year, as a result of work disruption and lockdowns to curb the pandemic. Total general insurance compensation dropped by 13.9% to JOD375.4m last year. Accordingly, the loss ratio for general insurance business was 75% in 2020 compared to 82% for 2019.
 
Combined net profit up 38% in 2020
The aggregate profits of 23 insurance companies operating in the local market surged by 38% to JOD26.7m ($37.7m) last year compared to 2019, according to a study by Sanabel Al-Khair Financial Investments.
 
The results also showed that 17 insurance companies made profits while six companies suffered losses in 2020, reported Al Ghad citing the study. In comparison, in 2019, among the 23 insurers, 19 were profitable while four reported losses.
 
Excluded from the study is MetLife. There are 24 insurance companies licensed to operate in Jordan. M 
 
JOD1 = $1.41
 
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