Jordan Times
Tuesday, October 25, 2005
Hindawi
highlights Jordanian experience in insurance at IAIS annual conference
The IC adopted a risk-based approach to provide greater efficiency and
effectiveness than the traditional compliance based systems
AMMAN (JT) — Insurance Commission (IC) Director
General Bassel Hindawi highlighted “The Jordanian Experience” within the
framework of “Establishment of Effective Insurance Supervision in Emerging
Markets.”
Addressed the 12th Annual Conference of the International Association of
Insurance Supervisors (IAIS) held in Vienna last week, Hindawi shared Jordan's
experience in the economic reform, including the financial sector reform, and
the role of the IC in regulating and developing the insurance sector.
He referred to Jordan's stand that stresses the necessity of integration into
the international economy and the adoption of a national economic reform
programme that would lead to monetary and fiscal stability and build a solid
base for sustainable economic development in the country.
Such a process led to Jordan's accession to the World Trade Organisation, the
signing of free trade agreements with the United States and Singapore, and the
partnership agreement with the European Union.
The IC chief emphasised the IC's main objectives of regulating, supervising and
contributing to the development of the insurance sector to enhance the role of
the industry in protecting the national economy and to build up and develop
national savings to support the economic development.
“A strategy to restructure, regulate and develop the insurance industry and
consequent action-plans were incorporated,” he said highlighting the main
technical, financial and legal frameworks that were implemented in compatibility
with internationally recognised principles and practices.
He also underlined the great attention the IC paid to strengthening the
supervision of the insurance sector through developing the skills of the IC
staff to carry out the off-site analysis and on-site inspection of insurance
companies effectively and efficiently.
The IC adopted a risk-based approach to provide greater efficiency and
effectiveness than the traditional compliance based systems. To accomplish this
objective, the commission is working on implementing a supervisory ladder that
links specific risk levels with a range of particular supervisory responses that
would potentially be invoked by the commission as preventive or corrective
measures.
He also explained the commission's methods of dispute resolution to ensure a
prompt and efficient delivery of compensation to their respective claimants
through amicable settlements, claims resolution by ombudsman, or mediation and
arbitration.
Hindawi concluded by stating that the plans the commission has adopted to carry
out the improvement and development include promoting insurance awareness,
promoting the development of life insurance and private pension schemes,
enhancing the efficiency of human resources and developing training programmes,
and promoting new insurance products.
In recognition of the role played by the IC to regulate and develop the
insurance sector according to international practices, Hindawi was elected as
chairman of the Regional Coordination Subcommittee of the IAIS. This committee
maps international training needs region by region, identifies regional
technical assistance objectives, drafts a strategy for implementation of
training objectives, coordinates regional technical assistance activities and
help obtain financial support for technical training.
The IAIS issued an insurance supervisory framework and other crucial new
standards for the supervision of the insurers. The chairman of the IAIS called
the new standards “a major step towards improving insurance supervision
regulation and practices on a worldwide basis, and an innovative supervisory
response in light of the fast changing insurance sector.”
The conference was attended by more than 430 participants from 100 countries.