Central Bank and Federation Discusses the Draft Insurance Law for 2017

Based on decision the Council of Ministers issued on 24 February, 2016, the Central Bank of Jordan (CBJ) will be in charge of regulating and supervising the insurance sector, taking over from the Insurance Administration at the Ministry of Industry and Trade, which has been overseeing the sector since 2014 after the dissolution of the Insurance Commission. The CBJ is expected to efficiently and competently supervise insurance activities and shall work on modernizing the regulatory and supervisory framework, in line with international standards and international practices.

For this, CBJ held a coordination meeting with the Board of Jordan Insurance Federation (JIF) as representative of the insurance sector in Jordan. Deputy Governor of the Bank, Dr. Maher Sheikh Hassan, who also heads a committee formed to oversee the transition, led the meeting. In attendance were Mrs. Rana Tahboub, Advisor at CBJ and Mrs. Lubna Al-Humoud, Director of the Insurance Administration at Ministry of Industry and Trade. Representing the insurance sector were Chairman of JIF, Dr. Ali Al-Wazani, Vice Chairman Mr. Majed Smairat and other board members including Messrs. Imad Hajji, Osama Janini, Fadi Sadeh, Mrs. Manal Jarrar and Dr. Lana Badr.

The Board of JIF examined the draft law in coordination with member companies where a consultative meeting was held, after notes and comments were received from the sector. The meeting was attended by representatives of 23 insurance companies including chairpersons and general managers. The purpose of the meeting was to discuss the draft law, review the insurance companies’ comments and inform them of the Federation’s strategy and plan in addressing the draft law in a way that would serve the sector’s interests.

It is noteworthy that the draft law has been proposed to amend the insurance regulation law
No. 33 of 1999 and its amendments, in order to keep abreast of developments in the sector and address the legal gaps, which have emerged since the law was enforced. Additionally, the new law aims  to comply with the other related laws and legislations which have witnessed major amendments recently such as the Companies Law and Corporate Governance instructions. Moreover, the new law will be adjusted to cope up with the CBJ’s law, working procedures and the bylaws, which regulate its relationship with other financial institutions under its supervision.