Impact of Middle East War on Jordan’s Insurance Market

The Jordan Insurance Federation (JIF) has released a report assessing the impact of the Middle East war on the local market.

The conflict, which broke out on 28 February 2026, has triggered a marked economic slowdown, driven by rising oil prices and widespread supply chain disruptions. These pressures, compounded by the closure of the Strait of Hormuz, have significantly affected multiple insurance segments across the region, particularly in Jordan.

Key consequences for the sector include higher insurance premiums, primarily for the marine transport and political violence sectors, alongside increased demand for protection against geopolitical risks and a rise in reinsurance rates.

In its report, the JIF also outlines recommendations for stakeholders, calling on insurers to expand supply chain coverage, strengthen technical reserves, and adopt advanced actuarial models to better assess and manage war-related risks.