Motor third party liability insurance is loss-making

Jordanian insurers think that motor third party liability insurance will generate losses up to 42.3 million USD in 2012 for the market as a whole. The chairman of the Jordanian Insurance Federation (JOIF) has said that the loss is poised to worsen and reach 56 million USD in 2013 if no measure is taken by the authorities. In 2011, only five insurers out of 28 managed to make modest profits. Losses were then estimated at 39 million USD. At the beginning of February, insurers symbolically suspended the sale of motor third party liability insurance for a few days as a protest, asking for a substantial tariff rise or simply its deregulation.