Insurance
From The Report: Jordan 2014
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The growth of Jordan’s insurance industry reflects the maturation of the nation’s economy since independence in 1946. While the industry showed resilience during the global economic crisis, posting a rise in gross written premiums (GWPs) from 2008-09, competition within the sector is high. With 27 companies currently operating, achieving sustained profitability is a challenge for many of the smaller companies. The sector is dominated by the motor segment which in 2013 made up 40.8% of GWPs. Potential growth areas include the sharia compliant, or takaful, segment which has had considerable success across the GCC but currently accounts for a modest 7.9% of the market in Jordan. Moving forward, the pending dissolution of the Insurance Commission is set to dominate discussion within the industry, given the very central role that regulators play in developing the insurance sector across the region.

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Overview

Increased competition and new regulations transform the sector
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Jordan’s insurance industry is at something of a crossroads. Having shown its ability to grow in a trying economic environment, the sector’s future expansion is challenged by increasing competition and a significant change in the regulatory framework by which it is governed. The optimism which currently surrounds the industry is derived from the growth prospects of the wider economy, against which backdrop the IMF anticipates a 4% rise in GDP over 2015. The extent to which Jordanian insurers…