The Middle East Insurance Company (MEICO) has announced a strategic decision to fully discontinue its motor insurance licence effective 1 January 2026, following an in-depth study by the board of directors and executive management.
According to a notice issued by MEICO, the decision was arrived at following ongoing losses and structural challenges in the compulsory motor insurance branch across the market.
This decision was submitted to the Central Bank of Jordan and duly approved upon obtaining official authorisation dated 31 December 2025, in compliance with the applicable regulatory laws and supervisory instructions.
“This step is part of a responsible management approach aimed at enhancing operational efficiency, safeguarding the company’s financial strength, protecting shareholders’ rights, and focusing resources on insurance lines with sustainable viability and long-term stability,” said MEICO.
The insurer affirmed to its existing motor insurance clients that all services will continue to be provided until the expiry of valid insurance policies, with full fulfilment of all rights and entitlements, including claims handling and the execution of contractual obligations with the highest level of professionalism and responsibility.
The company will continue to offer all its other insurance products and services as usual, while proceeding with its development plans and strengthening its presence in specialised insurance sectors.
The company stated that since its establishment in 1962, it has not recorded any financial losses, despite the challenges faced by the sector.