Jordan’s Insurance Regulatory Commission on Wednesday suspended the Jordan-Gulf Insurance Company's license due to the “difficult circumstance the firm is facing,” said the commission's director general, Bassel Hindawi.
In a statement, Hindawi said that the suspension will apply to all forms of insurance the company deals with and the company will be prohibited from issuing any new insurance policies.
Hindawi was quoted by the paper as saying that the company has financial and administrative problems and that the decision conforms with the Insurance Supervision Act.
Such a move is taken when the company appears unable to fulfil its obligations.
Hindawi said as of yet, there aren't any figures regarding the company's financial losses. In 1999 the company's losses from the various types of insurance stood at JD1.4 million, against net profits of around JD303,000 the previous year.
Established in 2000, the commission regulates and supervises the insurance sector to secure the rights of the insured, beneficiaries and shareholders – Albawaba.com
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