The Jordan Insurance Federation was established in 1989, succeeding the Jordanian Association of Insurance Companies, which was founded in 1956 as the first body to regulate the insurance sector in Jordan. The Association was headed by several boards which included pioneers working in the field of insurance in that period. The Association continued to operate until 1989, when the Federation’s regulation was issued specifying its objectives and work mechanism, in addition to the formation of the Federation’s Board of Directors and its tasks as well as the organization of the Federation’s relationship with other entities and institutions.
In 2024, a new regulation was issued for the Jordan Insurance Federation (No. 26 of 2024), which came into effect as of 1 May 2024. The new regulation came in line with the requirements for the enforcement of the Insurance Regulatory Law No. 12 of 2021, which included new amended legislation was issued that is compatible with this law. New concepts were included in the law after shifting the task of regulating the insurance sector in the Kingdom to the Central Bank of Jordan.
The new regulation replaces the previous Regulation No. (107) of 2008 and its amendments to consider the requirements of the current and future phase and in line with the directions of the Central Bank of Jordan. The new Regulation included amendments to both the authorities and tasks of the Federation’s Board of Directors and the Federation’s management, represented by the Federation’s CEO. Therefore, the Board’s powers will be limited to overseeing the Federation’s operations without any executive role, which will contribute to providing broader powers and more flexibility to the Federation’s management to conduct daily work and implement the Board of Directors’ plans and future directions.
The new regulation has also expanded the tasks and objectives of the Federation by adding several new tasks including providing complementary services to the insurance business to serve the sector; accepting membership of the heads of associations for insurance support service providers as observers in the General Assembly of the Federation; coordinating with insurance associations and companies that provide support services to the insurance sector; and issuing a code of conduct for insurance business. Other tasks encompass submitting proposals to the Central Bank on legislations regulating the business of the insurance sector and submitting proposals to companies to enhance their role in the national economy, as well as their contribution to implementing social responsibility and representing the Federation with Arab and local insurance federations and associations.
The duration of the term of the elected Board of Directors of the Federation has been modified to become four years instead of two, like similar associations and federations, especially those under the umbrella of the Central Bank’s supervision, such as the Association of Banks in the Kingdom.
The new regulation has also organized the mechanism for electing the Federation’s Board of Directors, which consists of seven members, to be elected by the Federation’s General Assembly, and for the elected Board to elect chairman and a vice-chairman from among its members.