Albanian insurance companies posted gross written premiums for the period January-September 2013 of ALL 5.92 billion (EUR 41.9), or a 9.28% decrease compared to the same period last year, according to data provided by the Albanian Financial Supervisory Authority. During the analyzed period, the number of signed insurance contracts was 757,328 showing a decrease of 3.05% y-o-y.
As disasters continue to cost Albania dearly the country is cooperating
on the launch of an innovative regional insurance scheme to complement a
stronger domestic approach to disaster risk management.
MTPL remains the most important product sold on the market, while on the life insurance side, debtors' life is the main product, where banks are the beneficiaries. According to Enkeleda SHEHI, Chairperson for the Albanian FSA, "in terms of potential for future growth, health and life insurance have shown to have a high potential for growth in the last years. However, it should be noted that the low penetration on the market (0.67%) could be interpreted as an indication that the market is not only underserved and operating far from its potential, but also in general it presents opportunities to unlock in the future, especially in property, life and health insurance."
Nearly 40 percent, or more than 100.000 vehicles circulating in Albania's roads have no car insurance at all, according to the data unveiled by country's finance authorities.
At the end of March, 2013, the Albanian insurance market totaled ALL 2,085 million (EUR 14.9 million), or 11.96% more compared with the same of period last year, according to the figures published by the Albanian Financial Supervisory Authority (AFSA).
Albanian insurance companies posted combined gross written premiums of ALL 8.9 billion (EUR 64 million) at the end of 2012, or 7.38% more y-o-y, according to the financial data published by the Albanian Financial Supervisory Authority (FSA). Despite this increase, during FY2012, the number of signed insurance contracts was 1,057,821 or 19% less compared with year 2011.
"Regulator independence is a necessity for achieving and consolidating market development. A transparent and stable environment promotes consumer confidence and encourages free and fair competition among all market participants", stated Enkeleda SHEHI, Chairperson of the Albanian Financial Supervisory Authority in her opening speech to the international conference organized by AFSA under the title "Independence of the Financial Sector Regulators: Reemphasized".
During January-September 2012, the Albanian insurance market experienced a decrease of 0.18% to ALL 6.52 billion, according to data provided by the Albanian Financial Supervisory Authority. In European currency, due to the appreciation of ALL in relation to EUR, the local insurance market reported a 0.36% increase to EUR 46.50 million.
Insurance companies pay fewer damages to citizens compared to the cashed
premiums. The instant payment of the damage is 36 percent of the total
of premiums that insurance companies benefit. Mati Pepa, deputy director
of the Financial Supervisory Authority (FSA) in an interview for AS,
explains the premium-damage ratio in the insurance market.
The insurance premium revenues for the period January-June 2012 were
about ALL 4.07 billion (EUR 29.5 million), or 5.56% less in local
currency as compared to the same period last year, announced the Albanian Financial Supervisory Authority
During this reporting period, the number of concluded insurance
contracts was 469,449 or 25.40% less, compared to the similar period of
Albanian insurers' premiums revenues for the period January-March 2012 were about ALL 1.88 billion (EUR 13.41 million), or 15.74% less than January-March 2011, according to Albanian Financial Supervisory Authority (AFSA). "The major impact in this decrease of total gross written premium had compulsory motor insurance Green Card and accidents, with about 83% of the total decrease", showed an AFSA press release.
Albanian insurers' premium revenues fell by 6.8% on the year to about 3.4 billion leks ($30.7 million/24.6 million euro) in the first five months of 2012, official statistics indicated.
Albania's insurance market shrank by 24.61% in the first two months of 2012, according to Albania's Financial Supervisory Authority.
The World Bank, which is assisting the Albanian government regarding the pension reform, has signaled that the increase of the retirement age could be one of the best options to tackle the problem.
The Business Consultative Council chaired by Albania's Minister of Economy Nasip Naco met on Tuesday to discuss about two important draft laws such as that on insurance and VAT in Albania.
Auto insurance rates in Albania will undergo reform in upcoming months and they will be depending on factors related to the degree of vulnerability for an accident, Top Channel reported on Tuesday referring to Albania's Financial Supervisory Authority.
Albania's Ministry of Transportation has facilitated the procedures for registering a motor vehicle in the country, local media reports. The only required documents now are the ownership certificate and the ID card. The law took effect on February 13, 2012.
Albania's insurance market suffered a sharp decline by 31.82% in January 2012, according to Albania's Financial Supervisory Authority.
Albania's competition watchdog will launch an investigation regarding the sudden increase of car insurance rates to establish whether insurance companies in Albania have conspired to fix prices, local media reports.
Albania's insurance market grew in local currency 2.3% in 2011 compared to the previous year (excluding reinsurance written premiums), according to data published by Albania's Financial Supervisory Authority (AFSA). In European currency, insurance premium revenues were about EUR 60.01 million. At the same time, the number of insurance contracts was of 1,306,602, up by 77.5% compared with year 2010.