Insurances

The Insurances market in Jordan is projected to reach a market size (gross written premium) of US$2.92bn in 2024.
Within the market, Non-Life Insurances dominate with a projected market volume of US$1.63bn in 2024.
The average spending per capita in the Insurances market is expected to be US$256.50 in 2024.
When compared globally, the United States leads with the highest nominal value, reaching US$3.8tn in 2024.
The market is anticipated to experience an annual growth rate (CAGR 2024-2029) of 1.93%, resulting in a market volume of US$3.21bn by 2029.
In terms of gross written premium, the United States is expected to generate the highest amount globally, reaching US$3.8tn in 2024.
Insurance penetration in Jordan is steadily increasing, driven by a growing middle class and a focus on regulatory reforms.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Jordan has been experiencing steady growth and development in recent years. Customer preferences in the insurance market in Jordan are shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking out policies that offer a wide range of benefits and coverage, including health, life, and property insurance. Trends in the insurance market in Jordan indicate "include a growing emphasis on digitalization and technology integration. Insurers are leveraging technology to streamline processes, enhance customer experience, and offer innovative insurance products tailored to the needs of the market. Additionally, there is a noticeable trend towards more personalized insurance solutions, as companies seek to differentiate themselves in a competitive market. Local special circumstances in Jordan, such as the regulatory environment and demographic changes, are also influencing the insurance market. Regulatory reforms aimed at increasing transparency and consumer protection are shaping the way insurance products are marketed and sold in the country. Moreover, the young and tech-savvy population in Jordan is driving demand for digital insurance solutions, pushing companies to adapt to changing customer preferences. Underlying macroeconomic factors, such as economic stability and income levels, play a significant role in the development of the insurance market in Jordan. As the economy continues to grow, disposable incomes are increasing, allowing more individuals and businesses to invest in insurance products. Additionally, the stable economic environment in Jordan is fostering confidence among consumers, encouraging them to purchase insurance policies for long-term financial security.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.