TIRANA, April.30 – The insurance market in Albania needs a renewed legal framework for the regulation of its activities, since the last revisions in the law were made in 1992. This request was launched by representatives of insurance companies in their first meeting with Prime Minister Berisha where problems faced by the insurance providers were discussed. Only 0.5 percent of the GDP (or an average 10 euros per inhabitant) is covered by the revenues of this market, while the relative figure in other countries is around 3 percent, some six times higher. The majority of the insurance revenues, around 66 percent, come from the mandatory vehicle policies. According to the Agency of Financial Supervision, the insurance market is very fragmented and has problems related to predatory prices and abuses in competition laws. Prime Minister Brisha admitted that the government had not done enough for the insurance market, promising further assistance and a special focus on the legal structure that should be developed in cooperation between the Ministry of Finance and the Agency of Financial Supervision. The new law has to cover all areas according to modern standards that address the emerging challenges of the market, noted officials. Avni Ponari, general director of “Sigal”, explained that the existing 1992 law is not only incomplete but also outdated and does not cover the construction sector even though this is the most expansive industrial sector of the country.
Sigal enters into pact with Uniqa Group Austria
Last month, Uniqa Group Austria entered into an extensive cooperation agreement with Albanian insurer Sigal to provide a foundation for the extension of the preferred partnership distribution cooperation of Uniqa with the Raiffeisen Banking Group in Albania. Sigal holds a 28 percent market share, positioning it as the largest insurance provider in Albania. It also owns subsidiaries and representation, in addition to having a market presence, in Kosovo and Macedonia. The agreement enabled Uniqa to secure the possibility of a majority acquisition in Sigal in 2010 by means of a fixed option in the contract. Sigal was founded in 1999 as one of Albania’s first private insurance companies. It has a comprehensive sales network offering a wide range of insurance products and services.
INSIG shows increased profits, but slated for privatization
Last month, Uniqa Group Austria entered into an extensive cooperation agreement with Albanian insurer Sigal to provide a foundation for the extension of the preferred partnership distribution cooperation of Uniqa with the Raiffeisen Banking Group in Albania. Sigal holds a 28 percent market share, positioning it as the largest insurance provider in Albania. It also owns subsidiaries and representation, in addition to having a market presence, in Kosovo and Macedonia. The agreement enabled Uniqa to secure the possibility of a majority acquisition in Sigal in 2010 by means of a fixed option in the contract. Sigal was founded in 1999 as one of Albania’s first private insurance companies. It has a comprehensive sales network offering a wide range of insurance products and services.
