Jordan’s Association of Insurance Companies was established in 1956 to act as the first commission to regulate the insurance sector in Jordan. Several pioneering insurance professionals headed the Association over the years and members included some of the highly experienced Jordanian insurance experts.
The Association remained active until 1989 when a Royal Decree was issued establishing Jordan Insurance Federation (JIF) for the purpose of organizing and managing the insurance sector in collaboration with the Insurance Commission, an independent supervisory body founded in 1999. In 2008, a new statute was issued restructuring the Federation’s Board and identifying its objectives. The market today includes 25 operating insurance companies providing a wide range of life and non-life products.
In 1987, the Unified Compulsory Insurance Office (UCIO) for motor third party liability (TPL) insurance was established and began its activities under the supervision of the Association. There are 32 UCIO branches at the Licensing Departments across all the Jordanian Governorates and Jordanian boarders’ crossings. UCIO is also in charge of distributing the compulsory motor TPL insurance shares of Jordanian vehicles tenders among insurance companies and settling their claims accidents. It also handles the accidents’ claims concerning the Arab vehicles insured under the Orange Cards system and Jordanian vehicles insured at the unified insurance offices in the Arab countries.
Enhancing motor underwriting: In 2013, JIF, in cooperation with the Public Security Directorate, launched the Electronic Traffic Accidents Reporting System (ETARS) in Jordan which aims to provide insurance companies with precise data and photos to efficiently settle motor claims and curb down fraud in the motor insurance line.
This initiative came after the success achieved in issuing motor TPL policies online on behalf of insurance companies through using the Nationwide Electronic Motor Insurance System (NEMIS) starting 2005. Recently, the Federation signed an agreement with authorities to collect traffic violation fines from foreign vehicles visiting or crossing through the Kingdom. JIF has also set up an electronic link with the Directorate of Customs to create a database for the foreign vehicles entering Jordan.
JIF is also looking to create an electronic link with the Directorate of Motor Licensing in an attempt to start issuing the e-motor insurance policy. Such initiatives are part of the Federation’s endeavors to modernize its tools and upgrade its role – and most importantly promote the insurance concept in society.
Expanding JIF’s role: JIF is also actively strengthening its role in areas such as training on the local and regional levels. It recently joined hands with the German Jordanian University (GJU) to create a subsidiary, the German Jordanian Insurance Centre (GJIC), to provide insurance-related courses for professional development. JIF also organizes various local and regional events such as the Aqaba Conference, which is recognized as a major event in the Middle East. JIF enjoys a high reputation in organizing international and local activities and conferences which attract insurance and reinsurance leaders from around the world.
Thanks to such initiatives, the Federation has become one of the most prominent entities in the region and is deemed the most active in continuously developing the sector and following up on the industry’s needs. Over the years, the Federation strengthened its relations with the public and private sectors in Jordan and the international insurance community.