The insurance market grew by 16% for the last year

The data of the Financial Supervision Authority showed that the total market volume, measured by gross written premiums, reached ALL 19.3 billion or almost EUR 160 million. Gross written premiums also exceeded the level recorded before the pandemic in 2019, by 9.7% more.

Although the market has returned to the normal growth trend, with the first pandemic rates, Albania still has one of the smallest insurance markets in Europe, with about 55 euros per capita insurance premiums per year.

In the division according to the two main segments, the non-life market dominated for the previous year, with more than 92.4% of gross written premiums, while the value side premiums for this segment increased by 15%. The life insurance market recorded slightly higher growth rates, with 22.7%, but again premiums in this segment occupy a relatively low share of the total market, with 7.4%. The growth of the life insurance market was supported especially by the main product, the debtor’s life insurance. Thanks to the increase in bank credit, this product marked an annual increase of 28.7%, while its share in the life insurance market reached 68.3%, from 65.1% a year earlier.

The largest market, non-life insurance last year was dominated by compulsory motor insurance, which brought 66.7% of gross written premiums to the market. However, the specific weight of these products marked a slight decrease of about 2 percentage points compared to a year ago.

Products related to cross-border movements, such as green card or border insurance, marked higher premiums and an expansion of market share. The most important product in terms of volume, domestic insurance TPL marked a lower increase, by 7.6%, while its share in total non-life market premiums fell to 56.6%, from 60.9% that had been a year before.

The contribution of voluntary insurance in the market increased compared to a year ago, however this increase came mainly as a result of developments in other related markets. The main product of voluntary insurance, property insurance against disasters, last year marked an increase in gross written premiums by 32.7%, while the share of this product in the market increased to 9.8%, from 8.5% a year earlier .

The growth of this product is estimated to have been significantly affected by developments in the real estate market and the expansion of property loans. With rising prices, bank loans are taking on average higher values ​​and consequently the provision of collateral is required for higher values. As a result, insurance premiums are also rising.

The increase of premiums by 22.5% was also marked by the CASCO insurance of motor vehicles. This product is legally voluntary, but in practice is quite related to leasing financing, as a mandatory condition of financial institutions. Last year the leasing market is estimated to have improved significantly, thanks to the revival of the economy, the growth of tourism and the higher demand for rental cars.

Another product that marked a high growth was the civil liability insurance, with 23% more compared to 2020. The growth in this product is especially related to the addition of new construction. In part, here too there is a contribution from a legally binding insurance, one that covers the responsibilities of builders./Monitor

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