Life insurance market in Albania rose by 23% in 2017 reaching record 9m euro

Life insurance market rose by 23% for 2017. The Financial Supervisory Authority’s data show that this market segment grew at a better pace than non-life insurance.

In total, life insurance for 2017 had a premium volume of 1.2 billion ALL or about 9 million euros.

As the figures show, the absolute value of life insurance market is still modest in size and accounts for only 7% of the small insurance market.

According to statistics, the main push in the growth of 2017 came in particular from contracts related to banking products and mainly from the life insurance of debtors.

Revenues from the life insurance of debtors increased by 38% compared to the previous year, proving that the performance of the new loan in 2017 was better.

The debtor’s life brings about 60% of the total premiums earned by life insurance companies. However, as can be clearly understood, this is in fact a virtually compulsory product, as a condition set by the bank for granting long-term loans.

As a result, life insurance products remain insignificant in amount.

In developed markets, life products have a dominant weight in the insurance market.

In Albania, life insurance premiums are on average only 3 euros per capita per year.

This is another indicator of the very poor market development and the lack of an insurance culture in society.

SCAN

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