Insurances

The Insurances market in Albania is projected to reach a gross written premium of US$10.02bn in 2024.
Non-Life Insurances dominate the market with a projected market volume of US$9.25bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$3.54k in 2024.
In comparison to other countries, the United States is expected to have the highest nominal value, reaching US$3.8tn in 2024.
The market is expected to grow at an annual rate of 3.45% (CAGR 2024-2029), resulting in a market volume of US$11.87bn by 2029.
The United States will continue to generate the highest gross written premium in the global comparison, with US$3.8tn in 2024.
In Albania, the insurance market is experiencing a surge in demand for health insurance due to increasing awareness about the importance of healthcare coverage.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Albania has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Albania are shifting towards more comprehensive coverage options, reflecting a growing awareness of the importance of insurance protection. Customers are increasingly seeking policies that offer a wide range of benefits and coverage, including health, property, and life insurance. This trend is in line with global patterns where customers are becoming more risk-conscious and seeking financial security through insurance products. Trends in the market show a notable increase in the penetration of insurance products among the population in Albania. This can be attributed to rising disposable incomes, urbanization, and a growing middle class. As more Albanians have access to financial resources, the demand for insurance products is on the rise. Additionally, advancements in technology have made it easier for insurance companies to reach a wider customer base and offer more tailored products and services. Local special circumstances in Albania, such as a history of underdeveloped insurance markets and a lack of awareness about the benefits of insurance, have contributed to the recent growth in the sector. As the market continues to mature and regulatory frameworks improve, more insurance companies are entering the Albanian market, leading to increased competition and innovation in product offerings. The government's efforts to promote financial literacy and insurance awareness are also playing a crucial role in driving market growth. Underlying macroeconomic factors, including stable economic growth, low inflation rates, and a favorable regulatory environment, are creating a conducive atmosphere for the insurance market in Albania to thrive. As the country continues to integrate with global markets and attract foreign investment, the insurance sector is poised for further expansion and development. The increasing focus on risk management and financial planning among individuals and businesses is expected to drive continued growth in the insurance market in Albania.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.