Albanians spending more on insurance than before

Albanians spending more on insurance than before
They may well be spending more on insurance than they did before, but they’re still not spending enough on life and health insurance. This is the situation with the Albanian insurance market this year. Figures show that Albanians would rather insure their vehicle than their life or health. According to the data supplied by the Financial Watchdog, in the first two months of this year, the value of life insurance policy has amounted to 0.16 million lek as opposed to 2,369 million lek paid for other types of insurance policies, despite the fact that the value of life insurance policies grew by 1.43% compared to a year ago. “The market continued to be dominated by non-life insurance policies.

These types of insurance policies accounted for 93.08% of the total volume of payments made”, experts of the Financial Watchdog explain, adding that the value of life insurance policies that were bought accounted for only 6.76% of the total value. Meanwhile, the Financial Watchdog also says that the value of car insurance policies in the first two months of the year also registered a significant increase. “Payments for motor insurance during the period January-February 2019 amounted to 1.52 million lek, 5.56% more than the period from January-February 2018”, experts explain.

These high figures may also be explained by the fact that motor insurance is a legal requirement for every road user, while life or health insurance is not. Meanwhile, the Financial Watchdog reports that the number of international motor insurance policies in the first two months of the year has increased by 50%.

Insurance companies are paying less in damages

Another interesting fact this year is that insurance companies have been paying less in damages than they did last year. However, most damages are still paid on car accidents. This also goes to show that car insurance continues to dominate today’s insurance market in Albania.

Albanians are paying less on voluntary contributions

The extra allocation of funds to pension schemes is also falling. This is indicated by the latest figures, according to which, the amount of money that Albanians are paying to boost their pension is declining. This is another aspect which shows that Albanians are not really eager to insure themselves. This is reflected by the low level of life insurance and the extra amounts going toward pension schemes. “Payments of voluntary contributions for the period January-February 2019 were 0.85 million lek, 5.35% less than a year ago”, the Financial Watchdog reports, adding that the number of contracts for these types of contributions this year fell by 1.33%.