Regulatory Alerts2024-01-21
Added · Updated
Central Bank of Jordan Decision on Supervisory Forms under IFRS 4 for 2024
The Central Bank of Jordan mandates that insurance companies submit specific supervisory forms, including those for Takaful business, within two months of the end of their financial year, signed by external auditors. The decision establishes calculation rules for technical reserves, requiring unearned premium reserves for general insurance to be based on remaining contract days (365 days per year) and life insurance reserves to be determined via actuarial principles. It sets minimum claims reserve thresholds of 10% for most licenses and 5% for fire and property damage, with exemptions for contracts reinsured by at least 70% with first-group reinsurers. This decision repeals Circular No. 1216/3/17 and applies to financial statements for the year 2024.