New changes liberalize compulsory car insurance market

TIRANA, June 27 – A recent government decision to liberalize car insurance premiums has been welcomed by insurance companies operating in the country who say that the market will now liberalize and services will improve. Insurance companies used to operate under fixed rate premiums which were set by the Finance Ministry which cannot be lower than 11,000 lek annually. Experts say the liberalization process for compulsory insurance market is expected to lower insurance premiums in the short term. However, insurance rates are expected to increase in the long term as companies move to improve services. The government decision is expected to introduce varying insurance fees for car owners based on personal damage records, driving experience, and car age. Some 427,000 motor vehicles are registered in Albania. The number of cars in Albania currently at 121 per 1000 inhabitants is the lowest in the region compared to Serbia, Macedonia, and Bosnia and Herzegovina, concluded a study by Open Data portal.