In October 2012, eight insurance companies operating in Albania were fined a total of 89 million lek (Euro 625,000) after the Competition Authority uncovered a price-fixing deal in compulsory motor insurance policy
TIRANA, Jan. 13 – Albania’s Competition Authority has launched an enquiry into the insurance market over an alleged price-fixing deal which is alleged to have limited competition in the compulsory motor insurance policies.
Monitoring carried out by the Competition Authority shows all agents traded insurance policies in online system called MSHM which was managed by a single broker. “Data from one agent’ system at a given time did not offer all companies licensed to trade the respective product, but a limited number of 4 to 5 companies. The number and the display of available companies on the system remains unclear because in another agent, all companies were available to offer motor insurance policies,” said the Authority.
The Competition Authority says the preliminary investigation starting November 2013 will determine whether the bahaviour of the insurance companies has limited competition.
Currently, insurance policies for compulsory motor insurance MTPL are offered at the same price of around 13,500 lek (Euro 94) by all nine companies operating on the market.
Data published by the Financial Supervisory Authority show insurance premiums in the first eleven months of this year dropped by 5.1 percent to around 7.6 billion lek (Euro 53.5 million) affected by a double-digit drop in the motor insurance premiums, which account for around 40 percent of the market. Paid claims during this period dropped by 2.5 percent to 2.4 billion lek (Euro 16.8 million).
In October 2012, eight insurance companies operating in Albania were fined a total of 89 million lek (Euro 625,000) after the Competition Authority uncovered a price-fixing deal in compulsory motor insurance policy. The deal was made in February 2012 when all companies fixed motor insurance prices in a banned deal severely damaging competition.
Some nine insurance companies operate in Albania, of which only INSIG remains wholly state-owned following unsuccessful privatization attempts.
The Albanian insurance market is overwhelmingly non-life oriented with around 87.7 percent while voluntary insurance accounts for 54.2 percent of total insurance premiums.
