The Financial Stability report published recently by Bank of Albania shows that the contribution of insurance companies to the Gross Domestic Product by 1.8% during the first semiannual of 2015. Insurance companies increased their activity by selling gross premiums at an amount of ALL 6.4 billion while the penetration of insurance industry indicator (the report of gross premiums and the GDP) was 0.45% during this period.
Currently, in the insurance market in Albania operate 12 licensed insurance companies (8 nonlife insurance companies, 3 life insurance companies and 1 reinsurance company). According to the report, the loss indicator (the report between the damages paid and gross written premiums) has improved by decreasing to 22.7% in the first semiannual of 2015, from 24.4% that was registered at the same period of 2014.
One of the main reasons that has affected in the improvement of this sector is the increased number of new insurance contracts in report with damage payments. According to the report, approximately 0.25% of damages are covered from gross written premiums.
News source: ATA
Photo credits: Chris Potter / Flickr
Leave a Reply