Control over the activities of insurance companies was commenced in 1965 when Act No. (5) for the year 1965 was issued, but the accelerating progress achieved by insurance companies lead to issuing of Act No. (30) for the year 1984 on 16/12/1984 to deal with the pitfalls found in the pervious Act, and to be more compatible with the economic developments experienced by Jordan at the time: And after eleven years had passed necessities and developments came up in the Jordanian Insurance Market enforcing their existence in the demand for joining others in globalizing its economy to be market oriented towards the international markets and that resulted in issuing a Act amending to the Insurance Control Act No. (9) for the year 1995.
The Central Bank of Jordan
Insurance Regulatory Act No. 12 of 2021
Under the issuance of Act No. (12) of 2021 Insurance Regulatory Act which was Published in the Official Gazette No. (5718) on 16-5-2021.The mission of Controlling and supervising of the insurance sector was transferred to the Central Bank of Jordan, since the act was implemented as of 15-6-2021.
The Act came with new concepts on the separation of management from ownership and to strengthen institutional governance in insurance companies, as well as defining the definition of the influential interest and the main shareholder in insurance companies.
All regulations and instructions issued under the previous Act No. 33 of 1999 will remain in effect until they are cancelled or replaced by new articles.
The Insurance RegulatoryAct aims to regulate the rules for practicing insurance business in a way that ensures the insurance sector achieves its goals by updating the regulatory frameworks on insurance business by enabling the Central Bank to supervise and control the sector in line with the best practices applied in the world.
It also aims to strengthen the role of the Central Bank in establishing the rules of institutional governance in insurance companies and insurance service providers, to improve the financial solvency of insurance companies, to set clear and transparent standards for their oversight and to regulate procedures for licensing insurance companies and the processes of ownership of existing companies to prevent control over them by unreliable shareholders, and to grant the Central Bank The necessary powers to deal with troubled companies.
The Act defined the regulatory requirements to ensure the separation between life insurance and general insurances for companies that provide both, and worked to establish the rules for legal regulatory regulation of Takaful insurance companies and activate the role of Sharia supervisory bodies and enhance their governance over Takaful insurance companies, in addition to addressing the shortcomings and loopholes created by the practical application of the current Act No. (33) of 1999 and its amendments.
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Available in Arabic Only