The Jordan Insurance Federation (JIF) has outlined how the government will help promote and develop the insurance industry in the kingdom.
JIF director-general Maher Al Hussein told Al-Ghad that the following measures would help increase the insurance sector’s contribution to the Jordanian economy:
- Liberalise mandatory insurance tariffs to stop underwriting losses.
- Motivate insurers to merge with each other to enhance their financial solvency and create strong economic institutions able to increase risk retention and design new insurance schemes that meet the needs of individuals and organisations.
- Review the unified motor insurance agreement (‘Orange Card’) related to the movement of vehicles between Arab countries in light of the developments that have occurred since its signing in 1975 in a way that safeguards the interests of all parties to the agreement. The developments include economic and political conditions faced by some Arab countries which have made it difficult for them to settle compensation.
- Amend tax legislation to provide incentives to purchase life and medical insurance policies as well as other types of insurance.
Mr Al-Hussein pointed out that the requirements of the insurance law regarding the governance of insurance companies, and the creation of new jobs and tasks – such as hiring compliance managers – would lead to higher administrative costs. In addition, insurers have to spend thousands of dinars on computer programmes and IT systems and hire manpower to implement IFRS17.
The Central Bank of Jordan, which took over supervision of the insurance industry in June 2021, is working in partnership with JIF and industry players to develop viable solutions to the challenges facing the sector and to enhance confidence in the sector, he added. M