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Albania : Insurance Market Development (English)

The insurance industry in Albania is relatively new. Prior to 1991, there were no insurance companies operating in the country. The insurance industry has been undergoing critical changes during the last decade. The life market in Albania is small, and still dominated by credit life insurance. Life insurance was introduced only in 1997 and made up about seven percent of gross written premiums. Risk based supervision was rolled out in 2016, starting with comprehensive on-site inspections in three non-life insurance companies using the risk-focused methodology. The RBS method led to a market database that helps evaluate the risk profile of each insurance company, as well as the risk level of the insurance market as a whole. The country’s good economic development in the last two decades has contributed to the insurance market’s development, but so have good policy choices informed by technical assistance projects and other interventions by the World Bank Group and the FIRST trust fund. Without aspiring to the impossible task of attributing causal relationships between these interventions and specific market developments, this report will nonetheless suggest what role these interventions may have played in developing Albania’s insurance market, so as to guide the way forward in this country and future developmental strategies of other countries.

Details

  • Document Date

    2020/01/01

  • Document Type

    Working Paper

  • Report Number

    144667

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    Other, The World Region,

  • Disclosure Date

    2020/02/04

  • Disclosure Status

    Disclosed

  • Doc Name

    Albania : Insurance Market Development

  • Keywords

    insurance market; Swiss State Secretariat for Economic Affairs; life insurance; insurance companies; level of foreign exchange reserve; state-owned enterprise; legal and regulatory framework; Insurance Regulation and Supervision; large volume of remittance; strengthening deposit insurance; risk-weighted asset; Stabilization and Association Agreement; enforcement of property right; short period of time; primary health care system; insurance law and regulation; early stage of development; small and medium size enterprise; Insurance & Private Pension; property and casualty insurance; credit life insurance; life insurance premium; economies of scale; Ownership Share Type; international good practice; insurance premium tax; consumer price index; state-owned company; degree of informality; absence of insurance; Development Policy Loan; Value for Money; Rule of Law; social security program; automated teller machine; foreign direct investment; Benefit Insurance; value-added tax; nonbank financial institution; pay in cash; valuation of asset; civil service rules; social security scheme; risk management practice; private insurance company; degree of competition; life insurance product; lack of demand; lack of awareness; growth and development; amount of insurance; social insurance system; financial sector crisis; number of births; minimum credit rating; financial sector standard; demand for insurance; health care financing; current account deficit; success and failure; import of goods; degree of concentration; administrative expense ratios; centrally planned economy; life insurance policy; higher interest rate; market in europe; valuation of liabilities; compliance with law; good corporate governance; funding of reserve; million people; number of cars; formal financial institution; economic reform program; across national border; gross national income; private car market; catastrophe risk management; lack of investment; quality of supply; financial system stability; line of defense; private capital market; public health insurance; formal financial service; health insurance coverage; social security protection; decline in poverty; average monthly wage; excise tax revenue; loss of life; cost of transportation; life insurance contract; labor force participation; proportion of woman; piece of legislation; absence of corruption; health care insurance; financial sector development; outstanding loan amount; transfer of money; value added tax; joint stock company; information on population; private health insurance; purchasing power parity; marine oil pollution; lack of incentive; source of funding; first time buyer; general liability insurance; protection of policyholder; insurance penetration; insurance sector; insurance industry; legal framework; motor insurance; technical provision

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Citation

Albania : Insurance Market Development (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/437431577710173970/Albania-Insurance-Market-Development