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  Historical Background

During the Forties Period, Jordan was small size and has a population not more than 400 thousands, and its economy faced great difficulties after the second World War due to the recess of goods’ importing process. And at that time the insurance was not commonly used, except for the insurance of import credits which required marine or road transportation insurance. The Ottoman bank used to insure these credits with Eagle Star Company in London for a commission of 20%. The year 1946 was the beginnings of insurance market in Jordan when Mr. Ra’ouf Abu Jaber established an insurance agency affiliated to the Egyptian Orient Insurance Company which was established in 1921 at Cairo with a joint Egyptian-French Capital.

During the fifties period, a noticeable activity in the field of cars’ insurance (cars’ accidents) and marine transportation took place when Jordan was forced to discharge goods at Aqaba port which created the need for a strong sector of cars’ transportation. As a result for the need of providing coverage in these fields, insurance companies were established; Jordan’s Insurance Company was established as the first Jordanian insurance company at the beginning of the fifties period. During that stage, it was found suitable to organize the career in order to limit high competition that had risen in market as well as the incompetence of meeting great demands by some companies and authorities, therefore the Association of Jordanian Insurance Companies was established under the presidency of Mr. Ledger and Messrs. Ra’ouf Abu Jaber & Ilias Habaib as managers.

During the sixties period, Jordanian market witnessed an increase in the number of insurance companies when Middle East insurance Company was established with a capital of 200 thousands Dinars, followed by National Insurance Sharing Company.

During the seventies and mid eighties period, the sector’s status remained the same where the number of companies increased to become (33) company, agency and branch, (23) of them are local and the rest were branches for foreign companies. All of them were working in a market with a volume of installments not exceeding (33) million Dinars. As a result of the economic recess in late eighties as well as the random competition in a small market, in addition to the decrease of insurance prices below the technical level, many insurance companies faced losses which made the government issue the (Insurance Practice Monitoring Act) No. 30 for the year 1984. Article (56) of the said Act stopped the issuance of new licenses for Insurance Companies. In addition, Article 6/a imposed the increase of insurance company’s capital to become 600 thousand Dinars and obliged insurance companies to correct its status’ either by merging or by increasing the capital. All that led to the decrease of the total number of companies to (17) local company and (1) foreign company in the year 1987. the situation was comparatively stable until 1995 when law No. (9) for the year 1995 was issued. That law opened the opportunity once again to establish new insurance companies and obliged the increase of Jordanian Insurance Companies’ capital to become (2) million Dinars for companies practicing direct insurance and (20) million Dinars for companies specialized in re-insurance. As concerning the foreign companies; the law forced the increase of capital to become (4) million Dinars.

As a result, (8) new insurance companies entered into the market and the number of working companies increased to (25) local companies and (1) foreign company . The number in the year 2000 became (27) insurance companies,and in 2001 the number of insurance companies decreased to 26 companies after liquidation of one insurance company,In 2007&2008 three insurance companies entered the market raising the number of insurance companies to 29 companies,and at the end of 2008 one company (Darkom) withdrew from the market decreasing the number to 28 companies all of them working in a relatively small market in all levels if compared with other developing and developed countries, where insurance sector contributes with 2.18% of the Gross Local  Product (GDP) participation of the individual of his income paid on insurance does not exceed 69.9 Dinars (98,7$)annually.  This percentage is considered very low and doesn’t comply with the income, culture and modernity that characterize the community. Furthermore, the share of life insurances in 2011 amount for 9.4% in the market while it is 50% in the modern countries, and this percentage affects very much the formation of savings’ volume that characterize this branch of insurance specifically.

Early 2013, the number of insurance companies operating in Jordan Insurance market dropped to (25) companies due to exiting (3) insurance companies from the market during 2012 - 2013 as one insurance company canceled its license in 2012, and early 2014 the Insurance Commission issued two decisions to liquidate two insurance companies.

 Organizational Structure for Insurance Market in Jordan


Insurance Commission

This Authority was first established under the Insurance Supervision Act No. (33) for the year 1999 and succeeded thereby the Insurance Practices Control Directorate (prior). It is an independent entity in terms of finance and management and in charge of regulating the insurance sector and control and supervise its works so that to provide the environment suitable for the development thereof and to enhance the role of insurance industry in assuring persons and properties against risks to protect the national economy and to accumulate the national funds and promote and invest the same to support the economic development in the Kingdom.

Duties of this authority have been directed, through its three bodies, those are : the council, the Director General and Executive Staff to protect the rights of the insured parties and control the financial solventy of the companies, to promote the efficiency of their performance, achieve the positive competition among them, seek to provide efficient human workforce qualified enough for the practice of insurance business, disseminate insurance awareness and strengthen relations with the control authorities on both Arab, and International levels. 

Jordan Insurance Federation

The first Association for Insurance Companies was established in 1956 as the first authority for regulating the business of insurance sector in Jordan. It has been presided ever since by several authorities member by pioneers in the insurance business at that period. In 1987, the Unified Insurance office was created for vehicles insuring and started its work under the control of this Society which remained in business until the year 1989 when a Royal Decree was passed for the establishment of the Jordan Insurance Federation and the definition of its Basic Bylaw.

This Federation is mainly concerned with the developing technical activities for setting up the principles and costumes for the practice of this profession and presentation of the studies to the local insurance market and analyzing of its factors and situations in order to regulate and coordinate insurance practices according to this markets requirements; also for preparation of the directive definitions of the insurance rates and determination of the rules for granting deduction on those rates for the insured parties-clients of insurance companies which are members of this Federation. Its also seeks to unify insurance policies and establish insurance and re-insurance pools as required by the market; to enhance trust in insurance sector who are members in this Federation and assumes the responsibility for arranging for insurance seminars and conferences and training courses with the aim to promote insurance business and conduct scientific researches and prepare statistics which better serve insurance sector.

 Compulsory Unified Insurance Office
(Established in 1987)

The Compulsory Unified Insurance Office for Insuring Vehicles (Established in 1987)
This office carries out all works related to vehicles insurance with the licencing departments located in all Governorates of the Kingdom and insuring any vehicles crossing the borders (in transit) at the borders centers against civil liability under the compulsory insurance regulation for vehicles.

The office is also in charge of allocating the due portions of the Jordan vehicle compulsory insurance tenders to insurance companies and settlement of their accidents, in addition to settlement of claims for accidents involving Arab vehicles insured under the "orange card" and Jordanian vehicles insured by the unified Arab offices located in Arab Countries. 

  Insurance Companies

The number of insurance companies existing in Jordan market as in 2013  has reached (27) companies of which one is functioning as an agency for a foreign insurance company (Metlife Alico) . The capital of these companies amounted to (301.4) million dinars by the end of 2012 compared with (297.2) million dinars by the end of 2011. These companies practice Motor Insurance, marine insurance, Fire risk, General accidents risk, Credit insurance, life insurance and medical insurance.

Re-Insurance Companies

There is no such companies in Jordanian market specialized in re-insurance business.

Insurance Companies Existing in Jordan's Insurance Market in 2010 Each According to its Specialty

 General Insurance Companies & Medical

 Life & General Insurance Companies in Adition to Medical Ins.

Life Insurance Companies

General Insurance Companies Only

Re-Insurance Companies








Arab Assuresrs company canceled their life license in 25/4/2011
There are 26 Insurance companies licensed to practice medical insurance in the Jordanian Market 

 5  Employees In Insurance Sector

 At the end of the year 2011, the number of the employees in the Jordanian insurance market reached 2918 including those who work in the Insurance Conmission, Jordan Insurance Fediration, Insurance Companies, and doesnt include employees at the supplementary and support services such as  Insurance Agents, Brokers, Loss Adjusters in T.P.A Companies.
In the year 2011, the number of people (managers & technicians) employed by insurance companies was (2602) employee


Management & Technical Staff

Production Staff



Services Supplementary to Insurance Business

 In addition to the insurance companies, there are some other supplementary services insurance companies, which provide their insurance services through the following entities: 




Insurance Agents 


Insurance Brokers


Reinsurance Brokers


Loss Adjusters and Surveyors


Third Party Administrator




Insurance Consultant




Authorised Underwriter


Approved Foreign Reinsurance Brokers




Copyright 2006 Jordan Insurance Federation