Non-life insurances - Albania | Statista Market Forecast

The Non-life insurances market market in Albania is projected to reach a market size (gross written premium) of US$9.25bn in 2024.
On average, each person in Albania is expected to spend US$3.27k in the Non-life insurances market market by 2024.
The gross written premium is anticipated to grow at an annual rate of 3.47% from 2024 to 2029, resulting in a market volume of US$10.97bn by 2029.
When compared globally, the United States is forecasted to generate the highest gross written premium of US$2.5tn in 2024.
Albania's non-life insurance market is experiencing a surge in demand due to the country's growing economy and increasing awareness of the importance of insurance coverage.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

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, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

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

Albania's Non-life insurances market is experiencing significant growth and development.

Customer preferences: Customers in Albania are increasingly seeking non-life insurance products that provide comprehensive coverage at competitive prices. They are more inclined towards insurance plans that offer protection against a wide range of risks such as property damage, motor vehicle accidents, and liability claims. Additionally, there is a growing demand for customizable insurance packages that can be tailored to individual needs and preferences.

Trends in the market: One noticeable trend in the Albanian non-life insurance market is the increasing adoption of digital channels for purchasing insurance policies. Insurers are investing in online platforms and mobile apps to make it easier for customers to explore different insurance options, compare prices, and make secure transactions. Moreover, there is a shift towards offering usage-based insurance, where premiums are based on actual patterns of usage or behavior, particularly in the motor insurance segment.

Local special circumstances: Albania's non-life insurance market is also influenced by local regulatory frameworks and market dynamics. The presence of a relatively large informal economy and a history of underinsurance pose challenges for insurers in terms of market penetration and risk assessment. Additionally, the competitive landscape is evolving with the entry of new players and the development of innovative distribution channels to reach a wider customer base.

Underlying macroeconomic factors: The growth of the non-life insurance market in Albania is closely tied to the overall economic performance of the country. As the economy continues to expand and incomes rise, there is a corresponding increase in the demand for insurance products to protect assets and mitigate financial risks. Furthermore, favorable demographic trends, such as a young and growing population, contribute to the overall development of the insurance sector 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.