TIRANA, April 1 – After a record 36 percent boost in 2014, the insurance market, dominated by compulsory motor insurance has slowed down in early 2015. Data published by the country’s Financial Supervisory Authority shows the insurance market grew by 16.7 percent to 2 billion lek (Euro 14 million) in the first two months of 2015 compared to the same period in 2014 when compulsory motor insurance rates registered a sharp rise, sparking allegations of a price-fixing deal by all ten market operators.
Paid claims in the first two months of this year, the overwhelming majority of around three-quarters of which also belong to motor insurance also rose by 7.6 percent to 439 million lek (Euro 3 million) which is around 20 percent of gross insurance premiums, indicating a low level of consumer protection.
The compulsory auto insurance known as the Motor Third Party Liability (MTPL), also the key driver of the insurance market in Albania, slightly increased its market share to around 45 percent in the first two months of 2015.
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.
