Insurance companies paid fewer claims for the first four months of the year

2025-05-29 08:40:00, Ekonomi CNA

Insurance companies have paid fewer claims in the first months of this year.

According to statistics from the Financial Supervisory Authority (AMF), for the 4-month period January-April 2025, the value of gross claims paid by the insurance industry decreased to 2.67 billion lek, 4.3% less compared to the same period a year earlier.

The main effect on the reduction of claims paid was provided by the non-life market and the compensation fund of the Albanian Insurance Bureau. Meanwhile, claims have increased only for life insurance companies, by 23% more compared to the previous year. However, the weight of the life market in the claims structure remains modest, with 5% of the total, having a small impact on the overall performance of claims paid by the insurance market in the country.

In the non-life market, the claims structure continues to be dominated by compulsory motor insurance, with almost 69% of gross claims paid. Claims in domestic motor insurance have increased by more than 9% compared to the previous year, but in the meantime a balancing effect has been the decline by more than 50% in claims paid for the Green Card.

Among voluntary insurance, damages from fire and natural forces insurance are significantly decreasing, while damages related to comprehensive vehicle insurance and health insurance are increasing.

On the other hand, outstanding claims are on the rise this year. For life insurance companies, outstanding claims have increased by 18% compared to a year ago, while for life insurance companies, outstanding claims have increased by 8%.

In terms of premiums, the insurance market continues to show modest performance this year. For the first four months of the year, gross written premiums increased by 8.1% compared to the same period a year ago.

The life insurance market is also recording higher growth rates this year, at 10.6%, while the non-life market is growing by 7.9%.

In the Life market, growth continues to come mainly from the dominant product, debtor life insurance, which now brings in approximately 80% of this market's premiums.

In the non-life market, growth is mainly coming from compulsory motor insurance. Premiums from these insurances for the first four months of the year have increased by 14.3%. They bring in more than 67% of gross written premiums in non-life insurance.

The main voluntary insurance product, property insurance against fire and natural forces, is down 10% compared to the same period last year./ Monitor.al