ALBANIA: AFSA introduces MTPL Bonus-Malus system

The Albanian Financial Supervisory Authority (AFSA) has approved sets of instructions for Bonus-Malus system implementation. The Bonus-Malus system will begin to function in Albania starting April 1, 2019.

The Bonus-Malus rules adopted by AFSA will be applied to all local insurers that provide domestic MTPL for B1 and B2 vehicle categories. Similar to other Bonus-Malus systems around Europe, Albanian Bonus-Malus will affect the final insurance price for the consumer, depending on their claims history. MTPL price could be reduced to half its value if the driver had no claims in the past, while less careful drivers could get MTPL prices at a double rate.

According to AFSA and Bank of Albania statistics, the Albanian insurance market in 2018 was strongly represented by MTPL business lines. In overall market premiums (GWP), MTPL represented 63.6% from the total GWP (50.9% domestic MTPL and 12.7% Border and Green Card insurance).

Considering the high weight of MTPL business lines in the Albanian market, the Bonus-Malus system could change not only the dynamics of MTPL, but the evolution of the whole insurance industry as well.

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