Best market segment report: Jordanian insurers demonstrate resilience in the face of COVID-19 pandemic, but more challenges lie ahead
LONDON–(COMMERCIAL THREAD) – The COVID-19 pandemic has had a significant impact on premium volumes and returns on investment for Jordanian insurers in 2020, but overall, according to a new AM Best report, technical performance is improving, helped by the decrease in claims in the automotive and medical branches.
A new Best Market Segment Report, titled “Jordanian insurers demonstrate resilience in the face of COVID-19 pandemic, but other challenges lie ahead”, notes that gross written premiums for the Jordanian market fell by around 4% in 2020 compared to 2019 – the first drop in several years.
This decrease is due to an estimated reduction in volumes of 20 to 25%, which more than offset the price increases observed throughout the market, particularly in real estate and maritime lines.
However, claims in the automotive and medical branches also fell, leading to an improvement in the market combined ratio to 94% in 2020 from 99% in 2019.
The report also explains that while the tightening global reinsurance market has so far had limited impact on the lucrative inbound commissions of Jordanian insurers, in the longer term this trend could put upward pressure on rates. premium and lower on commission levels and could lead the country to carriers to restructure their reinsurance agreements.
To access a free copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=311513.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.
Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.