Claims paid in the first five months of this year rose by 44 percent to 1.3 billion lek
TIRANA, June 26 – While the number of insurance policies during the first five months of this year fell by a quarter, the insurance market shrank by only 6.7 percent. Latest data published by the Financial Supervisory Authority show insurance premiums in Jan-May 2012 reached 3.3 billion lek, down 6.76 percent compared to the same period last year.
In the first two months of 2012, the insurance market registered negative growth rates as high as 24.6 percent but started its recovery later in March after motor insurance policies were doubled by all eight companies following a six month-liberalization period which initially saw them reduced. The move is being investigated into by the Competition Authority on allegations of a banned deal.
Claims paid in the first five months of this year also rose by 44 percent to 1.3 billion lek. The majority 67 percent of them belongs to motor insurance.
Detailed data show compulsory motor insurance known as DMTPL rose by 24 percent to 1.1 billion lek in Jan-May 2012 accounting for 38.4 percent of the market compared to only 29 percent during the same period last year.
Green Card insurance fell by 50 percent during the first five months of this year.
In a recently published decision, the Competition Authority says the increase and price fixing by all eight companies in a sudden move and at the same level could have been caused as a result of a banned cartel deal which is a severe violation to the competition protection law.
The Financial Supervisory Authority has recently announced it is working on introducing a new scheme to calculate the compulsory motor insurance policies taking into consideration the cars’ age and engine capacity, but also driving record and geographical area.
Locally known as domestic MTPL, the compulsory motor insurance fees rose from an average of 5,000 to 6,000 lek (Euro 36 to 43) to 14,000 lek (Euro 100) for common cars with a 1,600 to 2,400 cm3 engine and above. Annual insurance policies for mini-buses, lorries and busies vary from 20,000 lek to 44,000 lek.
