Insurance companies paid 2.1 bln ALL in 2016, but just 12% of the damages
Damages paid for vehicle insurance last year totaled 2.1 billion ALL. According to data from the Financial Supervisory Authority, damages paid for accidents saw a hike last year by 23%.
This figure includes payments of damages incurred by the Albanian insurance companies into two classes: that of domestic vehicle responsibilities to third parties and motor casco insurance.
In total, these two classes account for more than half of the damages paid in the Albanian insurance market.
Despite last year’s growth, it seems that the figures involving paid indemnity for accidents in Albania are quite low.
If we take for granted the statistics of the World Bank for an amount of accidents that runs at about 130 million euros a year, then insurance companies last year paid less than 12% of this amount.
Difference, in most of the cases, is paid by the victims or by the state in the form of medical or social costs.
This is not the only calculation that highlights a low value of payment of damages in the Albanian insurance market.
The ratio between claims and premiums in compulsory insurance of vehicles last year was only 23%, a figure very low compared with all other European countries, especially if we consider that this is a product that holds the biggest share in the insurance market.