News Middle East08 Sep 2020

Jordan:Insurance claims paid fall by 20% in Jan-July 2020

| 08 Sep 2020

The premium income of 24 insurers in Jordan reached JOD358.3m ($505.3m) in the first seven months of 2020, a 2.8% fall compared to the corresponding period in 2019.

However, claim payouts for January-July 2020 plunged by 20% to JOD221.6m against JOD276.8m.

Top 5

The top five insurers in Jordan in terms of GWP & paid claims in January-July 2020 were:

 

GWP

Paid claims

Claims Paid

Company

JOD

Market share

%

JOD

Market share

%

Arab Orient (gig Jordan)

52,555,173

14.7

31,800,366

14.4

Jordan Insurance Co

34,678,440

9.7

19,043,346

8.6

Solidarity First Insurance

25,765,916

7.2

15,979,070

7.2

Middle East Insurance Co

24,388,593

6.8

12,117,009

5.5

Al-Nisr Al Arabi

22,074,334

6.2

11,854,290

5.4

Total

159,462,456

44.6

90,794,081

41.1

*Results are preliminary; for business written in Jordan only.

Premiums witness slower growth

Fire and liability were the only non-life lines of business which grew in the first seven months of the year. Fire premiums reached JOD40m, registering a 7.6% increase over the corresponding period in 2019, while liability insurance premiums reached JOD4.2m, a growth of 1.4%.

Motor and medical insurance contributed the highest premiums to the non-life market.

A summary of the performance of the main lines of business is as follows:

 

GWP (JOD)

Paid claims (JOD)

Line of business

2020

2019

Change

%

% of GWP

2020

2020

2019

Change

%

Motor

122,780,846

136,171,560

-9.8

34.3

100,154,632

140,429,474

-28.7

Medical

120,878,296

122,850,051

-1.6

33.7

85,110,678

96,409,489

-11.7

Fire

39,928,823

37,101,035

7.6

11.1

15,524,736

11,721,364

32.4

Marine

10,924,256

11,445,581

-4.6

3.1

2,086,896

4,865,054

-57.1

Liability

4,167,267

4,110,358

1.4

1.2

837,174

288,630

190.0

Others

5,488,147

6,104,451

-10.1

1.5

539,883

1,699,450

-68.2

Credit

303,226

513,568

-41

0.1

719,793

1,178,011

-38.9

Total nonlife

304,470,861

318,296,604

-4.3

85

204,973,792

256,591,472

-20.1

Life

53,855,631

50,480,074

6.7

15

16,662,033

20,239,269

-17.7

GWP

358,326,492

368,776,678

-2.8

100

221,635,825

276,830,741

-19.9

*Results are preliminary; for business written in Jordan only.

Takaful

The unaudited data, which were released by the Jordan Insurance Federation (JIF) reveal that takaful operators’ contributions grew by 1.6% to JOD42.7m (accounting for 11.7% of the market’s GWP) in the first seven months of this year against JOD42m generated in the corresponding period of 2019. Paid claims for takaful operators dropped by 17.7% to JOD24.9m in Jan-July 2020.

 

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