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CBJ, UNDP Launch Policy Paper on Insurance Sector Development in Jordan

Amman: The Central Bank of Jordan (CBJ), in cooperation with the United Nations Development Program (UNDP), has introduced a policy paper and action plan aimed at advancing the insurance sector in Jordan.

The announcement came during a session titled “Financing for Insurance Development in Jordan,” part of the activities under the Inclusive Insurance and Risk-Financing Project facilitated by the UNDP.

The document sets out to tackle the primary challenges within the insurance sector, aiming to broaden and enhance the range of policies, products, and capabilities available. This initiative seeks to ensure equitable access to financial services across the board.

Ziad Ghanma, Deputy Governor of the Central Bank, remarked that the session builds upon previous efforts and meetings to carry out the insurance inclusion and risk financing project. This project represents the collaborative efforts between the Central Bank and the UNDP.

Ghanma expressed optimism that the meeting would lead to actionable recommendat
ions and solutions.

He highlighted the Central Bank’s goal to expand the insurance sector’s contribution to Jordan’s GDP, emphasizing the importance of cooperation across all stakeholders.

Nidal Ouran, representing the UNDP and serving as the Director of the Environment and Climate Change Program, underscored the significance of insurance coverage and risk financing as crucial safety nets. These measures aim to protect individuals and livelihoods from the impacts of various crises.

The project intends to develop innovative insurance products catering to the needs of vulnerable groups and small-scale farmers, with a focus on involving the private sector and incorporating technology for a sustainable agricultural sector and parametric insurance system.

The action plan outlines future intervention areas to support the sector, detailing mechanisms, indicators, and responsible entities, including the Central Bank, the Jordanian Federation of Insurance Companies, and other key institutions involved in the proje
ct.

Discussions will engage sector experts to pinpoint gaps, gather recommendations for policy adjustments or the introduction of new policies. These may include legislative changes to foster inclusiveness and product innovation, such as microinsurance for low-income groups.

The initiative also aims to enhance consumer understanding of insurance products and to leverage digital transformation strategies to widen reach and improve service efficiency.

The UNDP collaborates with stakeholders in the insurance sector to develop and implement strategies and tools, ensuring insurance product availability and benefits for all society segments, particularly the disadvantaged. This effort aligns with the UNDP’s strategic goals of reducing disparities, promoting inclusive growth, and achieving sustainable development targets.

The Insurance Inclusion Project, a key initiative of the UNDP Sustainable Finance Center, forms part of the UNDP Global Policy Network. It embodies the UNDP’s support for insurance and risk fin
ancing, offering policies, methodologies, networks, and partnerships to foster innovation in insurance products and services.

The project also focuses on the long-term transformation of insurance markets, aiming to bolster societal and economic resilience against various shocks and crises.

Source: Jordan News Agency