Regulatory Alerts2023-09-11
Added · Updated
Central Bank of Jordan Decision on Periodic Data Required from Insurance Agents and Insurance Companies
The Central Bank of Jordan mandates that insurance agents submit annual agency business statements by the end of March each year, while exempting natural production, non-dedicated production, and non-dedicated issuance agents from this specific requirement. Agents must also provide data every two years, with legal person and general insurance natural person agents reporting in even-numbered years, and life insurance natural person agents reporting in odd-numbered years. Insurance companies are required to submit annual data and detailed statements for each of their agents by the end of March annually. This decision, effective September 1, 2023, repeals Decision No. (31) of 2010 and establishes specific forms for these submissions.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Reference No: 1587 / 17 / 1 Date: 25 / 2 / 1445 AH Corresponding to: 10 / 9 / 2023 AD
Dear Esteemed Insurance Companies Dear Esteemed Insurance Agents
Subject: Periodic Data Required from Insurance Agents and Insurance Companies
Based on the provisions of paragraph (b) of Article (109) of the Insurance Business Regulation Law No. (12) of 2021 and Article (11) of the Instructions for Licensing Insurance Agents and Regulating Their Work and Responsibilities No. (10) of 2023, I hereby decide the following:
a) The insurance agent shall provide the Central Bank with an annual statement regarding the agency business conducted on behalf of the insurance company, not later than the end of March of each year, according to the following attached forms:
- Form No. (7-1): Statement of Agency Business in General Insurance
- Form No. (7-2): Statement of Agency Business in Life Insurance
b) The requirement stipulated in paragraph (a) of this decision is exempted for the following:
- Insurance Agent – Natural Production
- Insurance Agent – Non-dedicated Production
- Insurance Agent – Non-dedicated Issuance
c) The insurance agent shall provide the Central Bank with the data required under paragraph (b) of Article (11) of the aforementioned Instructions every two years, according to the following deadlines:
- Legal Person Agent: by the end of March in even-numbered years.
- Natural Person Agent licensed to conduct General Insurance business: by the end of March in even-numbered years.
- Natural Person Agent licensed to conduct Life Insurance business: by the end of March in odd-numbered years.
d) The insurance company shall provide the Central Bank with the data required under item (1) of paragraph (c) of Article (11) of the aforementioned Instructions annually, by the end of March of each year.
e) The insurance company shall provide the Central Bank with statements annually, by the end of March of each year, detailing the business conducted by each of its agents, according to the following attached forms:
- Form No. (8-1): Statement of Agency Business in General Insurance for each of the insurance company's agents.
- Form No. (8-2): Statement of Agency Business in Life Insurance for each of the insurance company's agents.
w) The forms attached to this decision are an integral part of it and shall be read together with it. z) Decision No. (31) of 2010 regarding the Insurance Agent Business Statement Form is hereby repealed.
h) The provisions of this decision shall be effective as of 2023/9/1.
Governor Dr. Adel Al-Sharkas
[Page 3] Central Bank of Jordan Form No. (7-1) Statement of Agency Business in General Insurance
Agent Name: .................................... For the period from ..../..../.... to ..../..../....
| General Insurance Business Branches | Current Period | Comparative Period | Notes | ||||
|---|---|---|---|---|---|---|---|
| Basic Premium | Total Premium | Commission Rate % | Basic Premium | Total Premium | Commission Rate % | ||
| Total |
Note: Total Premium refers to the Basic Premium value plus any additional fees (issuance fees, stamps, tax, etc.). The commission rate is calculated according to the following formula for each insurance branch: Total Commission / Basic Premium.
Number of Pages: Date: Registration No.: Signature: Agent: Insurance Company Signature:
[Page 4] Central Bank of Jordan Form No. (7-2) Statement of Agency Business in Life Insurance
Agent Name: .................................... For the period from ..../..../.... to ..../..../....
| Life Insurance Business Branches | Current Period | Comparative Period | Notes | ||||
|---|---|---|---|---|---|---|---|
| Basic Premium | Total Premium | Commission Rate % | Basic Premium | Total Premium | Commission Rate % | ||
| Total |
Note: Total Premium refers to the Basic Premium value plus any additional fees (issuance fees, stamps, tax, etc.). The commission rate is calculated according to the following formula for each insurance branch: Total Commission / Basic Premium.
Number of Pages: Date: Registration No.: Signature: Agent: Insurance Company Signature:
[Page 5] Central Bank of Jordan Form No. (8-1) Statement of Agency Business in General Insurance for each of the Insurance Company's Agents
Insurance Agent Registration No.: .................................... For the period from ..../..../.... to ..../..../....
| General Insurance Business Branches | Current Period | Comparative Period | Notes | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Basic Premium | Total Premium | Commission Rate % | Commission Value | Total Paid Claims + Expenses | Loss Ratio (Total Claims / Total Premiums)% | Basic Premium | Total Premium | Commission Rate % | Total Claims + Expenses | Claims Provision | |
| Total |
Note: Total Premium refers to the Basic Premium value plus any additional fees (issuance fees, stamps, tax, etc.). The commission rate is calculated according to the following formula for each insurance branch: Total Commission / Basic Premium.
Number of Pages: Date: Signature: Insurance Company:
[Page 6] Central Bank of Jordan Form No. (8-2) Statement of Agency Business in Life Insurance for each of the Insurance Company's Agents
Insurance Agent Registration No.: .................................... For the period from ..../..../.... to ..../..../....
| Life Insurance Business Branches | Current Period | Comparative Period | Notes | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Basic Premium | Total Premium | Commission Rate % | Commission Value | Total Life Insurance Claims (Paid + Accrued) | Basic Premium | Total Premium | Commission Rate % | Total Life Insurance Claims (Paid + Accrued) | Claims Provision | ||
| Total |
Note: Total Premium refers to the Basic Premium value plus any additional fees (issuance fees, stamps, tax, etc.). The commission rate is calculated according to the following formula for each insurance branch: Total Commission / Basic Premium. Total Life Insurance Claims (Accrued) refers to insurance policy entitlements plus insurance policy claims after deducting the settlement value.