The insurance market is a very important part of our financial system. It includes the private and state owned companies which are in the business of insuring individuals and businesses. In order to benefit from the insurance coverage, individuals and businesses pay an insurance premium to protect themselves against specific events, and in case these events materialize, they are paid a pre-determined amount by the insurance company.
Life insurance is offered to individuals in the event of their death or another individual insured by the insurer through a life insurance policy. Non-life insurance icnludes all insurance related services which are not included in life insurance policies (such as real estate properties, health insurance, car insurance, etc).
During the last five years, the average of the reimbursed damages versus the premiums received by the insurance companies for the non-life insurance market results as follows:
Source: Financial Supervising Authority
Data for 2011 is as of April
Analysis and comments: Open Data Albania
During 2006-2011, the company with the highest ratio of paid claims/premiums received was INSIG (37.6%), followed by Atlantik (31.7%) and Sigma (29.7%).
Meanwhile in the life insurance market, the average of the ratio of paid claims/premiums received by the insurace companies is shown in the chart below:
Source: Financial Supervising Authority
Data for 2011 is as of April
Analysis and comments: Open Data Albania
During 2006-2011, in the non-life insurance market, the company with the highest ratio of paid claims/premiums received was Sigal Life (8.9%), followed by INSIG (8.5%) and Sicred (6.9%). In absolute terms, during 2006-2011, the company that has paid the largest amount of claims in the non-life insurance market is SIGAL (2.52 billion lek), followed by INSIG (1.56 billion lek) and Sigma (1.49 billion lek).
On the other hand, in the life insurance category, the company that has paid the highest amount of claims in absolute value during 2006-2011 is Sigal Life (133 million lek), e followed by Sicred (72 million lek) dhe INSIG (62 million lek). The insurance market is very important because it allows the risk transfer from one party to the other. Therefore the individuals and businesses who do not want to carry risk can transfer it to an insurance company. This is a key element for the well-functioning of economic and financial markets in a country.
Claims paid for non-life insurance policies (in % vs premiums)
Source: Financial Supervising Authority
Data for 2011 is as of April
Analysis and comments: Open Data Albania
Contributed by: R.E