E fundit!

21:36 POLITICS

Political scientist: The problem in Albania is corrupt officials who refuse to face justice

Political scientist Afrim Krasniqi said today that the mai...

The insurance market is ending 2024 with the lowest growth after the pandemic

2024-12-27 08:16:00, Ekonomi CNA

The insurance market is ending 2024 with the lowest growth in the post-pandemic period. According to data from the Financial Supervision Authority (AMF), at the end of the 11th month of 2024, gross written premiums reached the value of 22 billion ALL, an increase of 7.3% compared to the same period a year ago.

The market continues to rely mainly on mandatory insurance, while voluntary insurance does not seem to be showing new developments this year either. However, the slowdown in market growth in the last two years is partly due to the strengthening of the lek in the foreign exchange rate.

Approximately 1/3 of the gross written premiums in insurance are calculated in foreign currency, mainly in euros. Since the statistics are reported in lek, the strengthening of the local currency in the exchange rate has had a negative effect on the value of premiums written in foreign currency.

Meanwhile, the market structure does not present significant innovation, with most products following slow and organic growth.

For the 11-month period, gross written premiums in the Non-Life market increased by 7.1%, while in the Life insurance market by 9.9%.

The Non-Life segment continues to dominate, with nearly 92% of gross written premiums, and within it compulsory motor insurance remains dominant. At the end of the 11th month, they accounted for 66.7% of gross written premiums, up from 66.3% in the same period a year ago.

The slight increase in the share of compulsory motor insurance has mainly come from TPL domestic motor insurance, while the weaker performance is shown by the Green Card and Border Police products. Since both of these products are sold in Euros, even in this case it can be estimated that the exchange rate has had a negative impact.

Catastrophe property insurance remains the leading voluntary insurance product, accounting for 10.2% of gross written premiums. This product has seen a small increase of 3.6% and its specific weight against gross written premiums has fallen from the level of 10.6% it occupied a year ago. CASKO insurance of vehicles follows, with 8.1% of premiums, from 7.2% in the same period last year. The increase in KASKO insurance is estimated to be mainly due to the expansion of the car rental business, thanks to the increased demand related to tourism.

On the other hand, damages this year are growing at significantly higher rates compared to last year. At the end of the 11th month, insurance companies paid a total of 7.77 billion ALL in gross claims, an increase of 22.6% compared to the same period a year ago.

The structure of claims in the Non-Life market continues to be dominated by compulsory motor insurance, with around 70% of gross claims paid by Non-Life insurance companies./ Monitor Magazine