Insurance damages in Albania – Down by 3.6% for this year
Although the market does not show significant developments in size, at least they are paying less damages. Based on the data of the Financial Supervisory Authority, the claims for the 10-month period fell by 3.6% compared to the same period last year.
The ratio between claims and premiums fell again below 30%; for Albania this is normal, but for most of the other European markets it is an abnormal report. Supervisors’ guides provide that at least 50% of premiums should go to pay for damages, while in Albania most of the company’s expenses go to their operational needs and sales commissions.
For example, compulsory motor insurance for third party liability has a ratio between claims and premiums at 25%, very low if we consider the high risks with which this type of insurance is related.
On the other hand, companies continue to have millions of euros in liabilities to the compensation fund of the Albanian Insurance Bureau. Some of these obligations have been carried over for more than 15 years. According to the estimates of the Financial Supervisory Authority this summer, the liabilities amounted to about 17 million euros.
Last year, non-life insurance companies realized a net profit of 7.5 million euros.