Central Bank, Ministry of Agriculture, UNDP launch Inclusive Insurance and Risk Financing project

March 26, 2023

Amman, 22 March 2023 - The United Nations Development Programme (UNDP) launched the Inclusive Insurance and Risk Financing project under the patronage of H.E the Minister of Agriculture, Eng. Khaled Al-Hneifat and in presence of Deputy Governor of the Central Bank of Jordan Mr Ziad Ghanma and UNDP Resident Representative in Jordan Mrs. Randa Abl-Hosn as well as a number of partners. The project is implemented under the framework of cooperation and partnership between the Central Bank, the Ministry of Agriculture, the private sector and UNDP. The project, which is implemented in partnership between UNDP, the Government of Germany and the Insurance Development Forum (IDF) is aimed to integrate risk insurance into the development process and underline the importance of integrated insurance, risk financing and investment solutions so as to raise awareness on inclusive insurance and risk financing. It also seeks to increase the resilience of small farmers and producers against agricultural production and market risks, especially those resulting from the impact of climate change and other infrastructure risks, and to take the necessary measures to mitigate risks to the agriculture sector and agricultural investments, and encourage the private sector to participate in the development of the agriculture sector, in addition to enhancing he capacity of farmers to access financing and strengthening the role of the Central Bank in establishing institutional governance rules on the inclusive insurance and risk financing tools in insurance companies and implementing the financial inclusion policy.

The launch of the Inclusive Insurance and Risk Financing project comes at a time when efforts of the local and international communities are concerted to achieve the Sustainable Development Goals SDGs and to enhance the protection of vulnerable communities from social, economic, climatic and health disasters by reinforcing the role of insurance and risk financing in development.

“This project is consistent with the national approaches and strategies and the Economic Modernization Vision stressing the importance of transforming into a sustainable economic activity that takes into account all environmental and social dimensions and the engagement of youth, women, civil society organizations and think tanks," said the Minister of Agriculture Eng. Khaled Al-Hneifat.

The project aims at strengthening the role of the Agricultural Risk Fund and the new Law on Takaful, taking the necessary measures to reduce risks to the agriculture sector and the agricultural investments and encouraging the private sector to participate in the development of the agricultural sector. 

"UNDP is committed to the continued eradication poverty, of poverty, accompanying countries on their path towards achieving the Sustainable Development Goals SDGs, and working towards the implementation of the Paris Agreement in line with the Economic Modernization Vision. The risk insurance and financing project is an important safety network to protect people and livelihoods from the impact of crises, and we will work to promote innovation and creativity to help change systems and address the challenges that face the SDGs achievement,” said UNDP Resident Representative Randa Aboul-Hosn.

“The Central Bank of Jordan has taken many steps towards improving an enabling environment for financial inclusion. The strategy will include the insurance sector so as to enhance its role in addressing emergency situations and fulfilling the necessary requirement of decent life in addition to saving as one of the main pillars of the strategy in order to work on developing savings products that help the financial consumer in proper financial planning so that living conditions are improved and available financial resources are efficiently and responsibly used,” said Deputy Governor of the Central Bank Mr. Ziyad Ghanma in his opening remarks which he delivered on behalf of the Governor of the Central Bank, Dr. Adel Al-Sharkas. 

Work will also be done to incorporate the principles of green and sustainable financing in the action plans with partners in order to enhance the Kingdom's endeavor to transform into green economy and take into account the impacts of climate change on the targeted groups.