Claims paid by the insurance market are on the rise this year. According to data from the Financial Supervisory Authority (AMF), for the first eight months of this year, gross claims paid by the insurance market reached 5.96 billion lek (about 65 million euros), an increase of 9% compared to the same period a year ago.
Claims have increased in parallel in both the Life and Non-Life insurance markets. Gross claims paid in the Life insurance market reached 262 million lek, an increase of 14.7% compared to the same period a year ago.
Meanwhile, in the largest market segment, Non-Life insurance, claims reached 5.51 billion lek, an increase of 10.6% compared to the same period last year.
Meanwhile, only the claims paid through the Compensation Fund of the Albanian Insurance Bureau have suffered a decrease for this 8-month period, with 26.6% less compared to the 8-month period of last year.
The structure of claims continues to be linked to that of premiums and to the high concentration of the market in compulsory motor insurance products. For the 8-month period, more than 70% of claims paid in the Non-Life insurance market went to insurance events related to motor insurance products for third-party liability.
In particular, domestic motor insurance TPL dominated the total claims structure in this market, with 3.36 billion lek or about 61% of claims paid. Claims paid in this product expanded by 13% compared to the same period last year.
Claims related to the Green Card have a lower weight, with 8.9% of the total, while claims for insurance events related to the Border Police had a small weight, with 0.5% of the total.
Meanwhile, voluntary insurance products have a relatively low share in the claims structure. Among legally voluntary products, one motor product, CASCO vehicle insurance, still dominates, with more than 12% of gross claims paid.
Meanwhile, the most important voluntary insurance product, fire and natural disaster insurance, accounted for less than 8% of gross claims paid by insurance companies.
Meanwhile, even in the life insurance market, the claims structure is largely concentrated in the market's main product, Debtor Life, with almost half of the claims paid for this period.
The debtor's life product is almost entirely linked to bank credit. Banks require life insurance for long-term bank credit contracts and for large amounts. Usually, these insurance contracts are required for loans for the purpose of purchasing real estate. However, there are specific banks that may also require life insurance for consumer loans, for certain amounts or maturities./ Monitor
