Insurance
From The Report: Jordan 2013
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The insurance sector contributed 1.2% of total trade in the first nine months of 2012, down 54% on the same period of 2011, when it stood at 2.6%. While things are looking more positive for the sector in 2013, it nonetheless faces some major challenges, particularly in the dominant motor segment. Regulatory issues have been on insurers’ minds in recent times too, with the industry’s overall profitability and sustainability likely to be affected by the outcome of these structural debates. Changes in the regulatory environment are in the offing, and liberalisation of the sector remains a contentious issue.

Articles from this Chapter

Overview

Fixing the framework: Possible regulatory changes are under discussion
OBG
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While things are looking more positive for Jordan’s insurance sector in 2013, it nonetheless faces some major challenges, particularly in the dominant motor segment. Regulatory issues have been on compa-nies’ minds in recent times too, with the industry’s overall profitability and sustainability likely to be affected by the outcome of these structural debates. Meanwhile, many insurers report solid growth, with a fair outlook for the next 12 months. SECTOR STRUCTURE: The chief sector…

Analysis

At the crossroads: The motor segment is the subject of ongoing debate
OBG
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While motor is a challenging line of business in many markets, Jordan has recently seen this low-margin, high-volume sector make headlines, with many insurers sug-gesting that without changes to this segment, the industry as a whole could suffer greatly. The contro-versy surrounds compulsory, third-party liability insur-ance (TPL), yet it also highlights the challenges in the segment overall – a fiercely competitive market local-ly, and a dominant one in terms of premiums. CENTRAL ROLE:…