A shrinking population significantly increases per capita insurance premiums

2024-09-28 09:00:00, Aktualitet CNA

The decrease in the number of the population that resulted in the last census, among other things, has brought a significant increase in the indicator of insurance premiums per capita.

According to data from the Financial Supervision Authority (AMF), this indicator, also expressed differently as the density of insurance in the country, reached 9,526 ALL, an increase of more than 25% compared to a year ago.

The growth of this indicator has been influenced to a lesser extent by the expansion of the volume of the insurance market (gross written premiums increased by 9% last year) and to the main extent by the significant contraction of the total population shown by the Census .

Although the insurance density in Albania is at the highest levels ever recorded, it still remains among the lowest in Europe.

The insurance density indicator continues to have large differences between Tirana and other regions of the country. AMF statistics show that Tirana is the only district with an average premium per capita above the national average, in the value of approximately 18,878 lek for the last year or 98% more compared to the national average. For Tirana, gross written premiums per capita increased by 32% compared to a year ago.

Tirana is also the only county with a relatively balanced structure of premiums, where compulsory motor insurance accounts for about 50% of gross written premiums. This can be explained by the concentration of voluntary products, such as business or property insurance products in the capital.

A shrinking population significantly increases per capita insurance premiums

In the rest of the country, compulsory motor insurance accounts for between 85% and 97% of gross written premiums. This figure clearly shows that, outside the capital, the insurance market in Albania is almost entirely a compulsory car insurance market.

After Tirana, the second county in terms of the value of gross written premiums is Durres, with approximately 7,400 ALL per capita.

Vlora is ranked third, with insurance premiums in the amount of 7,100 ALL per capita, Gjirokastra, with approximately 7,000 ALL per capita and Korça, with slightly more than 6,500 ALL per capita.

At the bottom of the ranking, with a deep difference from other regions of the country, is Berat, with approximately 3,000 ALL per capita. This amount is 31% of the national average and less than 16% of the maximum level, which is recorded in Tirana.

According to data from the Financial Supervision Authority (AMF), last year gross written premiums reached a total value of 22.9 billion ALL or about 220 million euros./ Monitor.al