Underdeveloped by most metrics, Jordan's insurance sector, though offering solid growthpotential, faces a number of challenges. Demand in the market is constrained by the large numbers of lowincome households and the fragmentation of the competitive landscape in both major segments, which arecharacterised by a large number of (very) sub-scale operations. In key lines such as motor insurance, pricecompetition is also a challenge. Nevertheless, the increasing spending on private healthcare and risinginvestment in infrastructure should boost demand for health insurance and property insurance premiumsrespectively. Overall, the market is expected to record positive growth.
Key Updates And Forecasts
The economic outlook in Jordan is relatively subdued. Weak remittances, higher taxes and elevatedunemployment continue to weigh on private consumption, and coupled with poor terms of trade, this willprevent stronger growth. The BMI Country Risk team forecasts real GDP to expand at a rate of 2.8% in2017 and 3.3% in 2018, lagging behind the 5.0% annual average target set out in the government'srecently released Jordan Economic Growth 2018-2022 plan.
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