Non -Life Insurance Sector Buoyant Share in the Insurance Industry Albania
June 2016, Gurgaon
· The insurance industry growth is immensely hinged on motor third-party liability insurance in Albania
· The Albania insurance industry will support private agriculture insurance
Ken Research announced
its latest publication on, “The
Insurance Industry in Albania, Key Trends and Opportunities to 2019”,
which provides a detailed analysis of the insurance industry in Albania. Category-wise
coverage of different segments in the industry is also included in the report. It
analyzes the various distribution channels in Albania. The report enables the
reader to interpret future outlook on how the market will shape up by the end
of this decade.
The
communist era in Albania hindered the growth of the insurance sector for more
than 50 years. This led the sector behind and underdeveloped compared with
other European countries with gross written premium of near 0.66 percent of
GDP. With insurance consumption of Euro 20 per capita, the sector remains small.
There were 11 companies in the insurance market by the end of 2012. The real
growth of insurance premium was 3.0% from 2009 to 2012, tumbling below the
cumulative GDP growth over the same period despite a low market penetration rate.
The share of life insurance was very low accounting for one tenth share of the
total insurance industry in the country. The largest share of the total
non-life premium was of motor third-party liability insurance. The industry
showed a CAGR of 7.6% during 2010-2014.
The
insurance sector has relatively low importance in the country’s financial
system. In 2014, the banking system made approximately 91.7% of the financial
system while the insurance industry made only 1.8% of GDP. To assist the
Albanian Financial Supervisory Authority (AFSA) in implementing legal and
regulatory reforms to enhance the insurance industry’s supervision and
regulation, the World Bank initiated the Albania Insurance Market Reform in
2014. The private agriculture insurance is expected to be carried by an
increase in the number of agriculture and related businesses. The country’s
population decreased from 3.06 million in 2001 to 2.88 million in 2016 due to
increased emigration and falling fertility rate which further decreases insurance
incentive.
Global Insurance Industry
The global insurance industry is forecasted to show growth of 6.3 percent in the coming years. Health insurance sector has shown tremendous growth over past years and continue to remain the major insurance sector at the global market. The macroeconomic environment around the world shows significant improvement in the insurance market i.e. increasing GDP in many countries, expansion of financial resources of middle class and high net worth population. These boost the need for property casualty and life annuity insurance companies. The key challenges for the insurance are increasing competition, tight margin profits and soft pricing conditions. Technological solutions are used by the insurers to improve sales, distribution and customer service.
Key Topics Covered in the Report:
- Detailed analysis of Albania insurers
- Value and volume analysis for Albania
insurers
- Historic and Forecast value analysis by
category
- Key issues in the market
- Investor trend framework
· Analysis of mega-trends
To know more on coverage, click on the link below:
Related Reports:
Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
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