Jordanian insurance remains highly competitive

According to AM best, the Jordanian insurance market remains very competitive, with pressure on technical performance.

In its special report entitled “Jordan Insurance Ratings: Benchmarking,” the Agency notes that, despite the reasonable growth rates achieved in recent years, the market faces many challenges. High pricing pressure continues to be exerted on the main classes of business in particular on motor third party liability insurance.

The rising budget deficits have led to reductions in public expenditure and tax hikes which, coupled with a social unrest, weigh on insurance costs. In addition, the lack of insurance awareness among the population has significant implications on the low insurance penetration rate.