Insurance

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.