Jordan: Compulsory insurance price increase an alternative to full liberalization
Wednesday, 04 29 2015, Category: Insurance and Reinsurance, Country: Jordan
The president of the Jordan Insurance Federation Dr. Ali Al Wazani said that “the federal is still pressuring the Ministry of Industry and Trade to determine the timing of the compulsory motor insurance price liberalization”.
Al Wazani explained during an interview with “Al Ghad” that in case compulsory motor insurance rates are not liberalized in such a way as to preserve the rights of citizens; the only remaining option will be to increase prices at rates accepted by companies and that can stop their ongoing losses.
Al Wazani said that “government has been able to remove subsidies and liberalize the prices of many basic goods but it still did not take a decision related to compulsory insurance.
Al Wazani clarified that at a time when government prepares a study to liberalize prices, the Jordan Insurance Federation works for a fair compulsory motor insurance law that guarantees real competition and market balance and prevents price deterioration in order to protect individuals before insurance companies.
He added “we do not want to liberalize compulsory insurance prices in a way that keeps the Government hegemony on the details”.
Al Wazani showed that insurance companies will not be able to continue their operations given the current price of the compulsory insurance policy.
Source: Al Ghad - Jordan