LONDON--(BUSINESS WIRE/AETOSWire)-- The COVID-19 pandemic had a significant impact on Jordanian insurers’ 2020 premium volumes and investment returns, but overall, according to a new AM Best report, technical performance improved, helped by fewer claims in the motor and medical lines.
A new Best’s Market Segment Report, titled, “Jordanian insurers show resilience to the COVID-19 pandemic, but more challenges lie ahead”, notes that gross written premium for the Jordanian market fell by approximately 4% in 2020 compared with 2019 — the first decline in several years.
The decrease was driven by an estimated 20% to 25% reduction in volumes, which more than offset the rate increases observed across the market, notably in the property and marine lines.
However, claims in the motor and medical lines also fell, resulting in an improvement in the market’s combined ratio to 94% in 2020 from 99% in 2019.
The report also explains that while the hardening global reinsurance market has had limited impact on Jordanian insurers’ lucrative inward commissions to date, over the longer term, this trend could put upward pressure on premium rates and downward pressure on commission levels and may lead the country’s carriers to restructure their reinsurance arrangements.