A.M.Best: Jordan ins. market remains highly competitive
Friday, 05 31 2019, Category: Insurance and Reinsurance, Country: Jordan
The Jordan insurance market remains highly competitive, with pressure on technical performance accompanied by economic challenges, according to a new special report by AM Best.
In the Best’s Special Report, titled, “Jordan Insurance Ratings: Benchmarking,” AM Best notes despite the market showing reasonable growth rates in recent years, it is also facing a number of challenges. Pricing pressure on the core business segments and tariffed motor third-party liability business have hindered operating performance. Additionally, rising fiscal deficits have led to cuts in government spending and tax hikes, and the background of social unrest and weakness in commodity prices is a concern. Furthermore, the widespread lack of awareness and understanding of insurance and risk mitigation amongst the population is reflective of the low penetration rate.
Luca Patron, financial analyst, said: “Even though the challenges of the competitive Jordanian insurance market affected the ratings of some companies in the past, the overall operating performance of AM Best-rated companies remains at a good level and above the average market performance, benefitting from economies of scale and brand recognition.”