Insurance companies' revenues increased by 9.5 percent in the first eight months of the year compared to the same period last year, as Albanians are paying more and more to insure their lives, property, and even vehicles.
Official data shows that for the period January-August, Albanian citizens paid over 180 million euros in premiums, while the number of insurance contracts reached 1 million 116 thousand, marking an increase of 6.12% compared to January-August 2024.
According to the data, the market is dominated by Non-Life insurance, which accounts for over 91.5 percent of the total premium volume. Meanwhile, gross written premiums of voluntary insurance accounted for 38.16%, while those of compulsory insurance were 61.84% of the total market.
But while revenues expanded by almost 10 percent, claims paid by insurance companies declined. According to the AFSA, claims payments during January-August 2025 were around 55 million euros, falling by 2.27% compared to January-August 2024.
The largest share of gross claims paid remains motor insurance with around 42 million euros, or 76.7% of total gross claims paid. By August of this year, insurance companies paid around 42 thousand claims with an average of 1 thousand euros for each claim paid.
From January 1st of this year, the implementation of the new vehicle insurance scheme, bonus-malus, began, which determines a new calculation of the insurance premium based on risk factors. The new regulation foresees an increase in the price of the insurance premium for individuals who are young, who have little experience in driving a vehicle with a high engine power registered in the Tirana district, who will have a history of accidents, while for those who will not commit accidents there is a reduction in the price of the insurance premium.
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