Weight of insurance in Albania increased during 2018
Last year, Albanians spent about € 17 million in property insurance, or less than six euros per capita. According to statistics from the Financial Supervisory Authority, property insurance accounts for only 13% of total insurance premiums and is one of the most significant examples of backwardness of the insurance market in Albania.
This market had a modest increase last year, while the weight of compulsory insurance grew even more. Last year, compulsory insurance generated 68.2% of premiums in the non-life market, up by about 1.5 percentage points compared to 2017.
A similar tendency was also recorded in the life insurance market. The main product, the life of the debtor, brought 53.3% of the premiums from the less than 45% it had in 2017. In Albania, life insurance of the debtor is almost always a mandatory requirement set by lending institutions.
By 2018, the total insurance market grew by only 4.5%. The above data prove that, besides a modest quantitative increase, the market is not receiving any qualitative development, understood as an increase in voluntary insurance. It seems that insurers do not have much confidence in increasing the awareness of Albanians and propose new mandatory schemes for increase the market. This year, the Insurers’ Association will propose a law on compulsory insurance of professional responsibilities to third parties.