* Al-Sharkas: Royal Patronage Underlines Jordan's Strategic Commitment to the Insurance Sector
* Economic Modernization Vision Positions Insurance at the Core of a Deeper, More Efficient Financial Ecosystem
* Jordan Advances Toward a More Robust, Efficient, and Risk-Resilient Insurance Sector
* Insurance Sector Development Serves as a Pillar for Macroeconomic Stability and Social Protection
* Insurance Industry Operates as a Vital Catalyst for Economic Shock-Absorption and Resilience
* Digital Transformation and Artificial Intelligence Must Be Paired with Robust Governance and Policyholder Protection
* Regulatory Frameworks Underway to License and Govern Electronic Insurance Platforms

DEAD SEA, Oct. 5 (Petra) -- Representing His Majesty King Abdullah II, Central Bank of Jordan (CBJ) Governor Dr. Adel Al-Sharkas inaugurated on Monday the 35th General Conference of the Arab General Insurance Federation (GAIF) at the King Hussein bin Talal Convention Center at the Dead Sea.

Running through October 7, the high-profile summit is organized jointly by GAIF and the Jordan Insurance Federation (JIF) under the theme "Back to Principles," convening regional industry leaders, regulators, policymakers, and international experts.

Delivering the inaugural address, Dr. Al-Sharkas emphasized that the Royal patronage underscores Jordan’s strategic prioritization of the insurance sector, recognizing its expanding role in driving economic activity, safeguarding financial stability, and providing robust risk management frameworks for individuals and enterprises. He noted that the 35th edition of the conference builds upon a long legacy of joint Arab insurance cooperation, arriving at a critical juncture marked by rapid digital transformation, artificial intelligence adoption, and evolving risk landscapes.

Economic Resilience and the Vision for Modernization
Addressing the conference theme, Dr. Al-Sharkas stated that returning to foundational principles provides the necessary baseline to modernize industry tools and practices, ensuring the sector can anticipate emerging risks while balancing innovation with professional rigor.

The insurance industry has transcended traditional risk mitigation to become a vital pillar of macroeconomic stability and an active shock-absorber for regional economies, he noted. Under Jordan's Economic Modernization Vision (2023–2033), the sector occupies a central position within an increasingly deep and efficient financial ecosystem. Demonstrating this trajectory, Jordan’s insurance gross written premiums expanded by 6 percent in 2025 to reach approximately 1.2 billion dollars, while total sector assets scaled to roughly 1.8 billion dollars.

Regulatory Reform and Technological Governance
Outlining regulatory milestones, Dr. Al-Sharkas highlighted that since assuming supervisory oversight of the insurance sector in 2021, the Central Bank has implemented a systematic restructuring roadmap focused on bolstering solvency margins, enforcing corporate governance, upgrading human capital, and safeguarding policyholder rights.

The enactment of the Insurance Contracts Law for 2026 marks a qualitative leap in the Kingdom's legislative framework, establishing specialized legal parameters that clearly define the rights and obligations of all contractual parties while boosting investor confidence. Notably, the legislation introduces advanced legal architecture for modern risk-transfer mechanisms, including parametric insurance, which facilitates automated payouts based on pre-defined indices to mitigate climate and natural disaster risks.

Furthermore, Dr. Al-Sharkas stressed that technological disruption demands agile regulatory frameworks. The CBJ is currently developing specialized regulatory guidelines for licensing electronic insurance platforms alongside updating the legal framework governing online insurance brokerage. He added that the central bank views technology not merely as an automation tool, but as a core lever to enhance operational analytics, deploy machine learning algorithms for risk forecasting, and strengthen technical reserves.

Regional Vulnerabilities and Emerging Threats
Shakeeb Al-Zaidan, Secretary-General of GAIF, cautioned that while not all risks facing the industry are novel, their severity and systemic impact have escalated sharply in recent years. He pointed to compounding natural disasters--such as earthquakes in Syria and Morocco, and severe wildfires--alongside pandemics and shifting demographic trends across the Arab world.

Al-Zaidan warned that climate change is amplifying traditional hazards while introducing complex new threats, notably cyberattacks, electronic warfare, and malicious artificial intelligence applications. The misuse of AI raises acute challenges regarding data privacy and sophisticated cyber operations, compelling insurance firms to reinforce their technical defenses. He also highlighted the rising threat of sophisticated forgery and deepfake fraud, particularly within motor insurance lines, underscoring the necessity of strict ethical compliance and enhanced transparency.

Comparing macroeconomic penetration, Al-Zaidan noted that total insurance premiums across Arab markets reached 70 billion dollars in 2020, with insurance density contributing approximately 1.7 percent to aggregate Arab GDP--lagging significantly behind the global average of roughly 7 percent.

Industry Perspectives on Integration and Risk Management
Majed Smeirat, Chairman of the Jordan Insurance Federation, emphasized that intensifying global economic, climatic, and technological shifts require Arab insurance markets to deepen cross-border cooperation and technical expertise sharing. He noted that climate volatility necessitates bespoke parametric products and advanced loss-adjustment strategies, while digital transformation demands continuous workforce upskilling and elevated public insurance literacy.

Echoing these priorities, GAIF President Nasser Al-Busaidi underscored the imperative of strengthening technical infrastructure and human capital across Arab markets. He reiterated that capital adequacy, rigorous technical provisioning, and adherence to foundational industry principles remain the bedrock of sustainable insurance operations in an era of unprecedented volatility.

//Petra// AA

05/10/2026 12:30:02