The increase in accident damages for insurance companies is being curbed

2025-10-22 07:20:50, Ekonomi CNA

Claims paid by accident insurance companies are growing at a slower pace this year. According to data from the Financial Supervisory Authority (AMF), for the first eight months of the year, non-life insurance companies have paid 3.55 billion lek in claims in the motor third-party liability classes.

Compared to the same period a year ago, claims in compulsory motor insurance increased by 0.55%. A year ago, the increase in claims was 36%.

The main effect in curbing the increase in claims expenses was provided by the Green Card. Expenses for claims caused by Albanian vehicles abroad for the first eight months of the year have decreased by 31.3% compared to the same period a year ago.

However, claims related to domestic TPL insurance have continued to grow, up 9.3% compared to 8-month 2024.

Claims for compulsory motor insurance continue to significantly dominate the structure of insurance claims. This year, they account for more than 71% of the total claims paid by non-life insurance companies in Albania. The share of claims in TPL insurance has increased by one percentage point this year.

The value of claims that are subject to the Compensation Fund of the Albanian Insurance Bureau is also decreasing. For the 8-month period, claims paid in this category have decreased by 31.7% compared to a year earlier.

The Compensation Fund of the Albanian Insurance Bureau is legally obliged to pay damages caused by uninsured and unidentified vehicles. The Fund then has the right to file a claim for restitution against the person who caused the damage in court and recover the amount paid.

Since the beginning of this year, insurance companies have started applying differentiated risk premiums for domestic TPL insurance, for third-party liabilities.

The factors on which the premium differentiation is based are the engine power of the vehicle (the higher the cubic capacity of the vehicle, the higher the insurance premium); the age of the driver (higher premium for younger ages, up to 21 years old); ownership of the vehicle (depending on whether it is owned by an individual or an entity, where the vehicle can be used by several drivers); the vehicle registration district - districts with the highest number of claims will have a higher risk coefficient and the age of the vehicle (older vehicles have a higher premium).

Starting next year, the application of the bonus-malus principle is expected to begin, which will bring higher prices for drivers who cause damage./Monitor.al