A Chapter From - Regional Practical Guidance - Insurance - Jordan

Transport & Insurance Focus

Jordan’s insurance sector is regulated through a centralized and comprehensive regime led by the Central Bank of Jordan, which has assumed full authority over licensing, supervision, and conduct across the industry.Contents

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Law Update: Issue 376 – Transport & Insurance

A Chapter From - Regional Practical Guidance - Insurance - Jordan

Anand Singh
Senior Counsel,
Transport & Insurance

Melody Huang
Associate,
Transport & Insurance,
China Group

Dana Dakwar
Paralegal,
Transport & Insurance

This article is part of a broader regional regulatory guide for the insurance sector and includes sample questions and responses specific to Jordan. It outlines the regulatory environment governing insurance, reinsurance, intermediaries, and service providers under the oversight of the Central Bank of Jordan (CBJ), the primary and unified regulator following the enactment of the Insurance Regulatory Law No. (12) of 2021. The guide provides an overview of the key regulatory touchpoints such as licensing, capital requirements, reinsurance restrictions, outsourcing rules, the treatment of foreign branches, and dispute resolution. It is designed to offer stakeholders practical insight into operating within Jordan’s insurance market and complying with its evolving regulatory framework.

Overall Regulatory Framework

What is the name of the main regulator(s) governing insurance in this jurisdiction?

The insurance companies, reinsurance companies, insurance service providers, and all relevant parties in Jordan are regulated by the Central Bank of Jordan (“CBJ”) under the provisions of law No. (12) of 2021 Insurance Regulatory Law (“Insurance Regulatory Law”).

Jordan’s insurance sector is regulated through a centralized and comprehensive regime led by the Central Bank of Jordan, which has assumed full authority over licensing, supervision, and conduct across the industry.

What are the main areas which they regulate?
The CBJ regulates insurance companies and service providers, including licensing and code of conduct.Does Jordan have any other independent jurisdiction that function separate from the onshore jurisdiction?
As per the Insurance Regulatory Law, the CBJ is the only and main regulator which governs the insurance sector in Jordan (Ex: Aqaba Special Economic Zone Authority is a freezone area but there is no specific law for regulating insurance practices and companies in it). Are there any restrictions on the way reinsurance operates in this jurisdiction?
As per the Insurance Regulatory Law, a reinsurance company must obtain the CBJ permit and to be licensed by it to operate and provide the services. The Instructions No. (3) of 2008 regarding Licensing Reinsurance Company and Reinsurance Offshore Company (“Licensing Reinsurance Companies Instructions”) states all the requirements and restrictions for licensing reinsurance companies.Article (17) of the Licensing Reinsurance Companies Instructions stated that it is prohibited to practice reinsurance activities except by the below companies:

Publicly Joint Reinsurance Company.

Branch of foreign reinsurance company.

Subsidiary reinsurance company.

Exempted reinsurance company.

Are there limits or requirements for outsourcing operations to third-party vendors, particularly for critical functions?
The CBJ issued Instructions No. (12) of 2009 regarding Instructions of Licensing and Regulating the Business and Responsibility of the Captive Manager (“Licensing of Captive Manager Instructions”). The stated law defined the Management Company as ‘licensed company by the authority according to these instructions and decisions to manage captive company businesses. And the Insurance Regulations Law defined the Captive Company as ‘An insurance company established by one or more entities for the purpose of providing insurance cover for its risks or the risk of other parties’Article (4) of the Licensing of Captive Manager Instructions stated that the management company will be responsible to act on behalf of the insurance captive company and comply with the signed management agreement between both parties. Additionally, the instructions No. (5) of 2005 regarding Licensing Management Companies of Medical Insurance Services, Expenses, and Organizing their Business and Responsibilities (“Licensing Management Companies of Medical Insurance Services Providers”). The Licensing Management Companies of Medical Insurance Services Providers defined the Management companies of Medical Insurance Services and expenses as ‘the licensed company by the authority to practice the management of medical insurance services and its expenses in accordance with the terms and conditions of this instructions’.How are foreign branches regulated in Jordan?
The CBJ regulates all foreign branches. Articles (9) and (10) of the Insurance Regulatory Law states clearly the requirements for the foreign branch to be established and operate in the Kingdom, where the main requirement is to obtain the approval and be licensed by the CBJ, and upon obtaining the license to directly appoint an authorized manager for the branch while the company will be responsible for his acts.What are capital requirements in Jordan?
As per article (15) of Insurance Regulatory Law any increase or decrease in the company capital must be permitted and approved by the CBJ.Pursuant to the Insurance Regulatory Law, the CBJ issued the Instructions no. (6) of 2023 regarding the Minimum Capital of Insurance and Reinsurance Companies (“Insurance and Reinsurance Companies Minimum Capital Instructions”) where articles from (3) and till (7) states in details the minimum capital for the insurance companies based on the type.As example, the minimum capital amount for the insurance companies licensed to practice the either general insurance activities, or life insurance activities is JOD 8,000,000. And the minimum capital amount for the licensed companies to practice both of general insurance and life insurance activities is JOD 16,000,000. In addition, the minimum capital amount for the licensed re-insurance companies is JOD 100,000,000.

Is there a statute of limitations on insurance claims If so, what is it?
As per article (932) in the in the Civil Code the time-bar to file a claim related to an insurance policy is three years from the date of the incident.What mechanism do insurance policies usually provide for resolution of coverage disputes
The mechanism stated in the provisions of the Insurance Regulatory Law and the Insurance Disputes Settlement Instructions issued by the CBJ is to be followed.ConclusionJordan’s insurance sector is regulated through a centralized and comprehensive regime led by the Central Bank of Jordan, which has assumed full authority over licensing, supervision, and conduct across the industry. The CBJ’s expanding role reflects Jordan’s commitment to strengthening its financial sector through clarity, consistency, and regulatory best practices. With increasing attention to capital adequacy, outsourcing controls, and qualifications for intermediaries, it is essential for market participants to stay informed and compliant.Our insurance lawyers in Jordan are highly experienced in advising on all aspects of insurance and reinsurance law, including licensing, regulatory compliance, operational structuring, and dispute resolution. Whether you are seeking to establish operations, expand your service offerings, or manage regulatory risk, our team can provide the guidance you need to navigate the Jordanian insurance landscape. For legal support or strategic advice, please don’t hesitate to reach out.

For further information,
please contact Anand Singh,
Melody Huang and Dana Dakwar.

^{Published in}^{April 2025}