Insurance Regulation in Jordan: New Rules — Old System
The Jordanian insurance market has been free from extensive state ownership and pervasive premium, product, investment, and reinsurance controls. However, these positive features have been marred by the licensing of a large number of private compan...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/05/4271134/insurance-regulation-jordan-new-rules--old-system http://hdl.handle.net/10986/14074 |
| Summary: | The Jordanian insurance market has been
free from extensive state ownership and pervasive premium,
product, investment, and reinsurance controls. However,
these positive features have been marred by the licensing of
a large number of private companies, often on political
rather than professional criteria, and the resulting
fragmentation of the sector. Various policies have
perpetuated the fragmentation of the sector, while
regulatory forbearance has allowed the continuing operation
of several weak companies. Despite the avoidance of
pervasive controls and extensive state ownership, and the
presence of a large number of private companies, the
insurance industry is not well developed. This mainly
reflects the underdevelopment of life insurance. In
contrast, the level of general insurance is comparable to
several other developing countries in the region and
elsewhere. A major modernization effort has been undertaken
in recent years. This has included the enactment of a new
insurance law and the creation of a new Insurance
Commission. The latter has made considerable progress in
expanding its staff, undertaking a wide-ranging training
program to upgrade skills, and implementing a multi-year
action plan aimed at modernizing the regulatory framework
and enhancing the efficiency of the sector. |
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