News Middle East03 Mar 2021

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

| 03 Mar 2021

Total insurance premiums in Jordan fell by 3.5% last year to JOD594m ($838m), compared to JOD615.3mi for 2019, according to official data issued by the Insurance Department of the Ministry of Industry, Trade and Supply.

Of the total, general insurance premiums stood at JOD501.7m last year, a decline of 5.3% compared to 2019. The fall is 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 insurance premiums reached JOD92.3m in 2020, growing by 7.7% from JOD85.7m in 2019.

The data also show 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.

 

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