Albania’s market continued to be non-life oriented which constitutes about 92 percent of the overall premiums volume
TIRANA TIMES
TIRANA, May 3 – Despite an increase in contributions for the January – March 2010 period compared to the same period last year, the voluntary pension market still remains a small market, according to the latest report by the Albanian Financial Supervisory Authority.
“It is expected that recent legal changes, i.e. new law on voluntary pension fund, will open new perspective for this market,” the authority said.
The increases of the value of contributions and the number of the contributors, compared with the same period in 2009, are respectively about 42.20 percent and 14.93 percent. While, if compared with the end year 2009 the increases are respectively 11.2 percent and 1.3 percent.
Gross written premiums reached the amount of about 2,072 Million Albanian Leks for January – March 2010 or 7 percent more than January – March 2009.
Number of insurance contracts signed over January – March 2010 was 135,080 marking a decrease by 16 percent compared to January – March 2009.
The authority’s report said that the market continued to be again Non Life oriented which constitutes about 92 percent of the overall premiums volume, thus leaving Life Insurance with a share of about 8 percent. From the point of view of market structure according to compulsory and voluntary insurances, gross written premiums from voluntary insurance constitute 56 percent, while compulsory insurance premiums 44 percent of the market premiums. The growth in voluntary premiums has impacted the change of the market structure with the voluntary insurance gaining importance.
Motor insurance gross written premiums amounted to about 917 million leks or 10.46 percent less compared to the same period of 2009.
Gross written premiums in Border insurance increased by 28.16 percent in January – March 2010, while the number of contracts increased by 29.11 percent compared with January – March 2009.
Within the recent few years, the insurance market improved its structure in favor of voluntary insurance, which during January – March brought 56 percent of the overall insurance premiums. Voluntary insurance premiums reached about 1,155 million leks or 25.49 percent more than January – March 2009 but experienced a decrease of 33.27 percent in the number of insurance contracts compared to the same period of the previous year.
Non Life voluntary insurance revenues increased by approximately 26.84 percent compared to January – March 2009.
Life insurance premiums amounted to 169 Million Albanian Leks, incurred an increase of 18.17 percent compared to January – March 2009.
The increase in total gross claims paid was about 40.88 percent compared to January – March 2009. The major amount of paid claims belongs to motor insurance with 406 million leks or 86.96 percent of the total paid claims.
