INSIG expands market share

TIRANA, March. 10 – The government measures to create a trust in the insurance market have placed the INSIG company after 9 years in the second place as far as market share classification is based. 2006 data from the Supervising Authority of Insurance reveals that the revenues of INSIG have totaled 782 million lek, an 18.64 percent of the market. That puts INSIG in front of the other major company SIGMA which had 772 million leks in revenues. Saimir Zemblaku, Executive Head of INSIG has admitted that reducing the number of competitors form 11 to 1 has definitely been the key to easier competition in the sector. The government created at the beginning of 2006 a new agency called The Agency for Insuring of the Automobiles (ASA) which was granted the authority to give out car insurance license to private insurance companies. The only company left out of this obligation was INSIG. With the market resembling the oligopoly structure INSIG made better profits because the other companies had to sell at coordinated prices. Non-life insurance revenues for NSIG totaled 604 million leks, a 16 percent market share while other companies such as Sigal and Sigma had respectively 28.8 and 20,4 percent. The government also decided for all state institutions vehicles to b registered and insured with INSIG, a decision which infuriated private companies. The later complained of the government encouraging unfair competition practices. The profit data made available by Zemblaku reveal a profit of 5,5 million euro, out of which 3 million are in Albania, 2 million euro in Kosova and the rest from activities in Macedonia. INSIG has been slated for privatization and the Finance Ministry, its current owner has an approved strategy for the process. With the change in ownership the company has to undergo structural changes. The tender for the company will be announced within September. Among companies that have showed interest in the purchase of INSIG has been the internationally renowned “The General”, active in both Europe and United States.