Petra - The Ministry of Industry, Trade and Supply / Insurance Department issued the 2018 Jordan Insurance Sector Results Report to enhance transparency in the insurance sector and provide data to those interested in the insurance sector.

The report shows the structure of the Jordanian insurance sector as of the end of 2018, some related economic indicators, a summary of the results of the Jordanian insurance companies during the year, some financial indicators of the insurance companies, and a summary of the results of the supporting insurance providers during the year. The report indicates that the Jordanian insurance sector consists of 24 insurance companies licensed to conduct insurance business inside Jordan and 1077 support providers as of the end of 2018.

The report showed that the gross premiums written in the Kingdom for 2018 increased to reach JD605.8 million, an increase of 2% over the previous year. Accordingly, the insurance penetration ratio (the ratio of total premiums to GDP at current prices) reached 2.02% for 2018, although it is Still below the global levels of 6.09 percent, it is one of the highest in the Middle East and Africa region with an average of 2.21 percent. The per capita share of insurance premiums in Jordan in 2018 was JD 58.8.

The report also shows the distribution of insurance portfolio by 14.2 percent of the total life insurance premiums 85.8 percent of the total general insurance premiums, where motor insurance constitutes 37.6 percent and medical insurance 30.1 percent of the total written premiums respectively, and notes the distribution of insurance portfolios on a large number of insurance companies in general However, market shares are concentrated on average on life insurance. 

Written premiums for medical insurance leave increased by 8 percent in 2018 compared to the previous year and premiums written for life insurance leave increased by 7.8 percent compared to the previous year, while written premiums for motor insurance leave decreased by 2.3 percent, and written premiums for fire insurance and other property damage decreased by 4.3 percent. percent.

In contrast, total insurance compensation paid increased by 4.4 percent in 2018 to reach KD 478.8 million compared to KD 458.7 million in 2017.Total insurance compensation paid for vehicle insurance increased by 8.2 percent, for marine and transport insurance by 15.9 percent, and for life insurance by 6.4 percent.

Compensation for fire leave and other property damage decreased by 7.8 percent. The insurance companies achieved a net profit before tax of 2018 amounting to JD 19.5 million compared to a profit of JD 2.7 million in 2017, where Jordanian insurance companies achieved a total technical profit of JD 17.1 million compared to a technical profit of JD 3.5 million last year for business inside Jordan. Profits mainly due to the increase in the medical insurance leave from KD 16.1 million in 2017 to KD 3.4 million in 2018.

The paid-up capital of insurance companies amounted to KD 266.5 million, a slight decrease of 0.4 percent from the previous year, while property rights decreased by 4.8 percent from the previous year to reach KD 319.3 million.

It is worth mentioning that the loss rate (the ratio of the net cost of compensation to the net income from the written premiums of the general insurance branches and licenses of the Jordanian insurance market) was 85.2 percent, and the operating profit margin (the technical profit ratio of the insurance branches to the total written premiums) of the insurance market was 2.8 percent.

The ratio of net written premiums to gross written premiums (retention ratio) of the insurance market was 64.3 percent, up 4.1 percent from a year earlier.

Insurance companies achieved a return on average assets of about 2 percent and return on equity of 6.1 percent for 2018.

As for the results of the operations of the branches of insurance companies abroad, the total written premiums outside the Kingdom for 2018 decreased to 12.9 million dinars, a decrease of 16.3 percent from the previous year.

The total compensation paid by insurance branches outside the Kingdom decreased to JD 10.5 million, a decrease of 26.9% from the previous year.It is noted that there are no subscriptions to life insurance licenses outside Jordan during 2016, 2017 and 2018.

In order to enhance transparency and provide accurate information to the citizen to help him choose the insurance company that meets his needs, the results report included indicators on insurance companies, including the percentage of solvency margin, which reflects the company's ability to meet its future obligations and reflects the adequacy of the capital available to the company to meet the risks faced, in addition to shares.

The market for insurance companies in general and for each insurance leave, and other indicators. The report also showed the results of the support insurance providers.The distribution of the total premiums for the year 2018 from various distribution channels, of which direct sales accounted for 55 percent, while the total production of insurance agents and brokers and bank insurance business amounted to 160.9 million dinars, or 27 percent of the total. Premiums for 2018.

The report of the results of the activities of the Jordanian insurance companies for 2018 can be found on the website of the Ministry of Industry, Trade and Supply www.mit.gov.jo under the heading of the Department of Insurance.

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