TIRANA, Nov. 24 – Albania’s insurance market, heavily reliant on compulsory car insurance, registered moderate growth in the first three quarters of this year when paid claims rose by double digits.
A report by the country’s financial supervisory authority shows insurance premiums in the nine companies operating in this market rose by 7.2 percent to 10.8 billion lek (€78 million) with compulsory vehicle dominated insurance accounting for a market share of 62 percent.
Paid claims rose by about 28 percent to 3 billion lek (€ 21.5 million)
Insurance rates have slightly increased this year after the tax on insurance premiums was raised to 10 percent, up from a previous 3 percent.
Annual compulsory motor insurance rates for common five-seaters increased by an average of 20 percent up to 19,200 lek (Euro 137) last August, in a unanimous hike by all companies which heavily rely on compulsory insurance.
Albania’s non-life and compulsory insurance oriented insurance market grew by 21 percent in 2015 and by 36 percent in 2014 after a 4.6 percent annual decline in 2013.
Some nine insurance companies operate in Albania, including recently privatized INSIG operator. Last March, Albanian-owned Eurosig won a tender to purchase state-run insurance company INSIG for €15.8 million. The acquisition increased the insurer’s market share to 20 percent.
