The Insurance Industry in Jordan

This paper examines the structure and performance of the insurance industry in Jordan during the period of 2000–2005. The Jordanian insurance industry is free of state ownership in both primary insurance and reinsurance markets and has been spared the pervasive premium, product, investment, and reinsurance controls that have bedeviled the insurance markets of so many developing countries around the world. Despite these positive features, the insurance industry is not developed, which mainly reflects the underdevelopment of life insurance that has annual premiums of only 0.27 percent of GDP. In contrast, the level of general insurance is comparable to that of several other developing countries in the region. To overcome this situation a major modernization effort should be undertaken.