The insurance market in Albania continues to expand with increasing trends. A report published by the Bank of Albania shows that three funds for voluntary private pensions increased their activity by 41% during the first semiannual of this year, compared to a year ago. Sigal, Raiffeisen and SiCRED Pensions funds increased their activity by an amount of ALL 756.8 million during January – June period of 2015.
The activity of these insurance institutions is mainly dominated by investments in governmental treasury bonds by ALL 672.9 million, which increased by 21.8% during this period, compared to the last quarter of 2014 while the number of members in funds for private pensions increased by 27.1%. However, funds for private pensions still have a slight importance in the financial mediation, according to the report. By the end of March of this year, voluntary contributions for private pensions increased by ALL 56.05 (8.91%), compared to the last quarter of 2014.
Voluntary private pensions comprise a small market in Albania and it still presents a challenge for insurance companies but the latest trends show this sector is developing with increasing trends. Experts say the sector will grow rapidly in the upcoming years since the government has decided to exclude voluntary contributions for pensions from the tax on personal incomes.
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