Regulatory Alerts2023-06-05
Added · Updated
Instructions on Solvency Requirements for Insurance Companies No. (7) of 2023
The Central Bank of Jordan issues Instruction No. (7) of 2023, effective May 22, 2023, establishing solvency capital requirements for insurance companies under the Insurance Business Regulation Law No. (12) of 2021. The instruction mandates that insurers maintain available capital of at least 150% of required capital (200% for companies with foreign branches) and requires quarterly reporting of solvency data within thirty days of each quarter's end. It repeals Instruction No. (3) of 2002 and defines specific calculation methodologies for available capital, required capital against credit, market, underwriting, concentration, and operational risks, along with credit classification standards for local and reinsurance entities.