Jordan

Overview

Jordan is one of the most water-stressed countries in the world. Climate change and rapid urbanization are increasing the potential impacts of drought. Integrating insurance and risk finance into development can help mitigate these risks.
Working with government and industry partners, UNDP’s Insurance and Risk Finance Facility is developing agricultural insurance solutions, building institutional capacity and strengthening the enabling environment for insurance market development and disaster risk management in Jordan.
UNDP is also supporting government in reviewing insurance regulatory frameworks, strengthening financial education, developing disaster risk finance strategies, and increasing institutional capacity. UNDP is supporting the development of a national Disaster Risk Finance Strategy and providing guidance on integrating insurance and risk financing into Nationally Determined Contributions and Adaptation Plans.

Main Natural Hazards

Earthquake, Drought

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¹
Source:

https://drmkc.jrc.ec.europa.eu/inform-index/INFORM-Risk/Country-Risk-Profile}

Insurance penetration

2.5% (2022)

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¹
Source:

http://www.joif.org/en/jordan-statistics}

Biodiversity ranking

#109 out of 239 countries and territories (2023)

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¹
Source:

https://worldrainforests.com/03highest_biodiversity.htm}

Small business % contribution to workforce

70% of private sector employment (2022)

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¹
Source:

https://care.at/wp-content/uploads/2023/07/Annex-3_Labor-MarketValue-Chain-Report_Nexus-PRO-JORDAN.pdf}

Multidimensional poverty

0.4% (2017/2018)

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¹
Source:

https://hdr.undp.org/system/files/documents/hdp-document/2023mpireporten.pdf}

Number of insurance providers

21 insurance companies

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¹
Source:

http://www.joif.org/en/jordan-statistics}

% Workforce engaged in agriculture

3% (2022)

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¹
Source:

https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS}

Our work in numbers

1

Insurance solutions in development

Protecting people, jobs, agriculture and public assets.

3

Institutional and policy processes

Strengthening the enabling environment for insurance to scale.

35

Training programme participants

Building country capacity in insurance and risk finance.

Our projects

Building resilience for vulnerable groups
The Tripartite Agreement (TPA) is a public-private partnership between UNDP, 20 of the world’s largest insurers under the framework of the Insurance Development Forum and the German Federal Ministry of Economic Cooperation and Development (BMZ). Through TPA, UNDP is working with government and private sector partners to develop sharia-compliant takaful agriculture insurance to build financial resilience among smallholder farmers. With UNDP technical assistance, legislative changes are under way to facilitate the solution. The task force committee has reviewed the two phased approach proposed by IDF and agreed to move forward on phase 1 and 2.

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Increasing actuarial capacity to improve financial risk management
The UNDP Milliman Global Actuarial Initiative (GAIN) aims to help countries predict and prepare for risks by increasing actuarial capacity, enabling better risk modelling and more accurate pricing of insurance and social protection mechanisms. Through GAIN, UNDP is working with government and industry partners to improve actuarial training in Ethiopia, providing training, mentorship opportunities and support for local actuarial professionals.

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Incentivizing the development of new insurance products and services across emerging economies
UNDP’s Insurance Innovation Challenges are powering a new generation of insurance products and services tailored to underserved households and businesses in developing economies.
- Active in 25 countries, with an investment of over US$2.1 million
- Addressing specific barriers and opportunities to scale financial protection, with a particular focus on women, SMEs and other vulnerable groups
- Creating market opportunities for insurance providers and safeguarding development.
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