Governor CBJ highlights the draft insurance bill aimed at strengthening the stability of the sector

Ammon News – The Governor of the Central Bank of Jordan, Adel Sharkas, announced that the bank is preparing a draft insurance law that aims to regulate contractual relations between insurance companies and insured persons, providing a stable legal basis for these relations.

Speaking on Sunday at the opening of the Arab Symposium titled “Emerging Issues and Applications in the Arab Insurance Industry”, Sharkas stressed the importance of the symposium in strengthening the insurance sector, highlighting its key role in the financial and economic systems of countries and its contribution to economic and social development through constructive discussions on the insurance sector.

Sharkas noted that since the Central Bank of Jordan took over supervision of the insurance sector, it has created a legislative environment that reinforces prudent regulation. This includes improving the financial solvency and capital quality of insurance companies, enabling them to address risks and provide sustainable protection for citizens and the economy.

The Bank also updated the principles of professional and ethical practice in order to build public trust in the insurance sector and reviewed the compulsory insurance system to ensure due compensation to victims of road traffic accidents.

Taking on contemporary challenges, Sharkas drew attention to the growing risk of natural disasters and climate change. He emphasized the role of the Central Bank as a national partner in coordinating efforts to develop insurance solutions for residential and commercial properties and state infrastructure in the event of natural disasters. This includes the launch of the National Green Finance Strategy (2023-2028), which aims to make Jordan a regional leader in sustainable finance and increase the resilience of the financial sector to environmental and climate risks.

Sharkas called on insurance companies to offer appropriate financial solutions for environmental and climate risks, recognizing their essential role in implementing green finance strategies. He also noted the global trend towards digital transformation in the insurance sector, which is improving customer experience and efficiency of the sector.

He noted that the Central Bank has developed a regulatory framework enabling the licensing of electronic insurance platforms and a legal framework supporting technological progress, aiming to bring about a qualitative change in the insurance industry through technology.

Majid Samirat, Chairman of the Jordan Insurance Federation, emphasized the alignment of the symposium with the Federation’s goals to promote insurance awareness through conferences and seminars. The symposium aims to discuss key emerging issues in the Arab insurance industry and foster dialogue between senior economists, policymakers and industry leaders.

The two-day symposium will focus on the role of the insurance industry in economic development and financial inclusion, the security situation in the region and its impact on the Jordanian economy and insurance market.

Topics will include information security and cyber risk policy, information governance, disaster insurance, seismic situation in Jordan and the region, microinsurance and different types of insurance such as health, agricultural and pension insurance. Discussions will focus on climate change and recent natural disasters and floods in the Middle East and the Gulf. Petra