Draft law to regulate the Jordanian insurance sector

A new bill has been approved by the Parliamentary Committee for Economy and Investment. The text targets a better organization of the Jordanian insurance market.

Once the draft has been adopted and published in the official gazette, the Central Bank of Jordan shall replace the Ministry of Industry, Trade and Supply in the supervision of the sector.

According to Khair Abu Sailik, chairman of the committee, this will strengthen the role of the Central Bank in the good governance and supervision of insurance companies.

The measures introduced include the regulation of takaful insurance and the creation of a fund for road accidents. The new legal text also requires insurers to establish a support fund for insurance companies facing difficulties. Each insurer should thus deposit an amount of 1.4 million USD to the regulator.