Insurance market up by 26% in Jan-April

TIRANA, May 28 – Fuelled by a sharp rise in compulsory motor insurance rates, the insurance market registered a 26 percent growth rate in the first four months of this year. Data published by the country’s Financial Supervisory Authority show insurance premiums in the first four months of this year grew to 3.5 billion lek (Euro 24.6 million) despite the number of insurance policies dropping by 8.8 percent to 281,345.
The boost was a result of compulsory insurance premiums rising by around 49 percent compared to the first four months of 2014. Within this group the compulsory MTPL insurance premiums rose by 58 percent, accounting for 45 percent of the market share compared to 43 percent in January-April 2013. Green Card motor insurance needed to cross the borders had a market share of 22 percent at the end of April 2014, down from 25 percent a year ago.
Paid claims during the first four months of this year dropped by 1.3 percent to 830 million compared to the first four months of 2013. The increase is a result of compulsory auto insurance trading at an average of 15,000 lek (Euro 105), double compared to the early 2013.
All insurance companies were forced to reduce prices last February in order to maintain their market shares after INSIG cut rates by around 20 percent to 16,000 lek (Euro 112). INSIG’s market share in the compulsory motor insurance dropped to 6.14 percent in 2013, down from 7.41 percent in 2012, according to the Financial Supervisory Authority.