Jordanian insurers in the face of the Corona storm
Friday, 04 17 2020, Category: Insurance and Reinsurance, Country: Jordan
The CEO of GIG Jordan, the largest insurance company in the Kingdom in terms of business volume and profits, said that the credit risk for clients will increase if the crisis of Corona extends to the end of this year.Ali Al-Wazani added, during an interview with “Reuters”: “The concern about the continuation of the Corona pandemic will not be from the decline in sales due to the low demand only, but there will also be more important risks, which are the credit risks of customers and their ability to pay the installments.”
Al-Wazani explained that this means monitoring more allocations related to doubtful receivables, and thus new costs for the company affiliated to Gulf Insurance Group.
He added: “All expectations are near-term that extends to three months, six or 12 months only. Nevertheless, for sure, whatever the duration of this crisis, it will have an impact on the company’s operations, and therefore we do not expect to achieve what we accomplished last year.”
Al-Wazani indicated that the company stopped working regularly a month ago as a result of the announcement of the curfew, but switched to working remotely, which means less sales and less profit.
As for his future expectations regarding the demand for insurance, Al-Wazani said that the demand for loss-of-profit insurance will increase due to “business interruption” in addition to life insurance. He said: “In any crisis that occurs in the world, customer perceptions towards the demand for insurance change, as happened when the demand for electronic piracy and political violence insurance increased.”