Central Bank Governor Highlights Draft Insurance Law To Bolster Sector Stability

(MENAFN- Jordan News Agency)

Amman, June 30 (Petra) - Governor of the Central bank of Jordan, Adel Sharkas, said that the bank is preparing a draft insurance law aimed at regulating the contractual relationship between insurance companies and the insured, providing a stable legal foundation for these relationships.
Speaking at the opening of an Arab symposium titled "Emerging Issues and Applications in the Arab Insurance Industry" on Sunday, Sharkas underlined the importance of the symposium in bolstering the insurance sector, highlighting its crucial 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 assumed oversight of the insurance sector, it has fostered a legislative environment that enhances prudent regulation. This includes improving the financial solvency and capital quality of insurance companies, enabling them to confront risks and provide sustainable protection for citizens and the economy.
The bank has also updated the professional and ethical practice rules to build public confidence in the insurance sector and reviewed the compulsory insurance system to ensure due compensation for vehicle accident victims.
Addressing contemporary challenges, Sharkas remarked on the increasing risks of natural disasters and climate change. He highlighted the Central Bank's role as a national partner in coordinating efforts to develop insurance solutions for residential and commercial facilities and state infrastructure against natural disasters. This includes launching the National Green Finance Strategy (2023-2028), aiming to position Jordan as a regional leader in sustainable financing and enhance the financial sector's resilience to environmental and climate risks.
Sharkas urged insurance companies to offer suitable financing solutions for environmental and climate risks, recognizing their essential role in executing the green finance strategy. He also pointed out the global trend towards digital transformation in the insurance sector, which enhances customer experience and sector efficiency.
The Central Bank, he noted, has developed regulatory frameworks to license electronic insurance platforms and legal frameworks to support technological advancements, aiming for a qualitative shift in the insurance industry through technology.
Majid Samirat, Chairman of the Jordan Insurance Federation, highlighted the symposium's alignment with the Federation's goals to promote insurance awareness through conferences and seminars. The symposium aims to address key emerging issues in the Arab insurance industry and foster dialogue among senior economists, politicians, and industry leaders.
Over two days, the symposium will explore the insurance industry's role in economic development and financial inclusion, the region's security situation, and its impact on the Jordanian economy and insurance market.
Topics will include information security and cyber risk policies, information governance, natural disaster insurance, the seismic situation in Jordan and the region, micro-insurance, and various types of insurance coverage such as health, agricultural, and retirement insurance. Discussions will focus on climate change and the recent natural disasters and floods in the Middle East and the Arabian Gulf.

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