Insurance market scores a 19% growth in 2008

TIRANA, Saturday 14؉nsurance companies experienced an average growth of 19% in 2008, said the Financial Supervising Authority of Albania (AMF) in its annual report.
However, the report notes that the insurance market is far from reaching the development standards of the region. Like previous years, damages paid by the insurance companies were much lower than the clients’ contributions. Insurance revenues amounted to 7 billion ALL (56 Mln EUR) while damage payments were only 1.5 billion ALL (12 Mln EUR) with a damage/prime ratio of only 21.1%. The minimal ratio standard in the global market is around 50%.
In order to improve the evaluations of damages in the market, AMF has drafted a new law according to which evaluations will not be made by insurance companies, but from specialized licensed subjects.
One piece of good news for the sector is the increase in voluntary insurance clients who accounted for 44% of insurance contributions to companies. In the previous years, voluntary insurance averaged only 30% of market revenues.
Overall, insurance companies signed 692 thousand insurance contracts, 27% more than in 2007. A new law regulating compulsory insurance in the transport industry is expected to expand the insurance industry with two new products. The new law will implement compulsory insurance of passengers from accidents in public transportation and the insurance for the responsibility of damages caused to a third party by means of transportation.