TIRANA, Aug. 5 – Albania’s insurance market grew by 21 percent in the first half of this year boosted by a sharp increase in compulsory motor insurance which accounts for around two-thirds of the market.
Data published by the country’s Financial Supervisory Authority shows the insurance market grew to around 6.4 billion lek (€45.3 mln) fuelled by a 27 percent increase in compulsory motor insurance which includes the DMTPL, the border and Green Card insurance.
The compulsory third-party insurance, known as DMTPL increased its market share to 49 percent in the first half of this compared to about 47 percent during the same period last year.
Meanwhile, paid claims in the Albanian motor vehicle dominated insurance market registered a significant double digit increase in January-May 2015, hinting better consumer protection.
Data shows paid claims in the first six months of this year rose by 12.6 percent to around 1.46 billion lek (€10.3 mln) but yet accounted for only around a quarter of gross written premiums.
Back in 2014, Albania’s insurance market grew by a record 36 percent to 11.6 billion lek (Euro 81.7 million), fuelled by a 79 percent increase in the compulsory motor insurance which includes the domestic MTPL, border insurance and the Green Card insurance.
The Albanian insurance market, dominated by two Austrian insurance groups, is overwhelmingly non-life oriented with around 91 percent while compulsory insurance accounts for 60 percent of total insurance premiums. Some ten insurance companies operate in Albania, of which only INSIG remains wholly state-owned following unsuccessful privatization attempts.
