The shift from a culture of “buying insurance policies” only when required by law to an approach where insurance is viewed as a risk management tool requires greater trust, financial education, and products that address customers’ real needs. According to Klaidi Çitozi, Chief Executive Officer of SIGMA Vienna Insurance Group, the market’s true progress will be measured more by increased insurance penetration and the development of voluntary insurance products than by nominal premium growth alone.
1. How would you assess SIGMA’s performance during 2025 and the first part of 2026? Which segments performed best, and what were the main challenges?
2025 was a positive year for SIGMA Vienna Insurance Group, both in terms of portfolio development and the further strengthening of our market position. We continued to grow steadily while maintaining technical discipline, portfolio quality, and an unwavering focus on customer service. Specifically, during 2025, premium income increased by 11%, while the company maintained a market share of approximately 13%. This performance was also reflected in our financial results, with a profit of around EUR 3.5 million, confirming the healthy and sustainable development of our operations.
We recorded positive performance across several strategic segments, including motor insurance, property insurance, and health insurance. Beyond premium volume, the quality of growth is equally important to us: a diversified portfolio, proper risk pricing, and an efficient claims handling process.
Throughout 2026, we have continued on the same path while investing further in digitalization and enhancing the customer experience. We are also consolidating an increasingly loyal customer base that chooses us not only for our products or pricing but also for our reliability in claims settlement, security, and stability. For us, this trust is an invaluable asset and the foundation on which we continue to build long term relationships with customers, businesses, and partners. At the same time, the main challenge remains the challenge of the entire Albanian market: expanding insurance beyond mandatory products and creating a culture where insurance is perceived as a risk management instrument rather than merely a legal obligation.
2. What are your expectations for the insurance market and your company’s performance during the remainder of 2026 and in the medium term?
We are optimistic about the market’s medium term outlook. However, I believe we need to look beyond nominal premium growth. The true indicator of market maturity will be higher insurance penetration and, in particular, the development of voluntary insurance products. For SIGMA VIG, our objective is sustainable and high quality growth. We see significant potential in health, property, casco, liability, and business insurance products. At the same time, technology will play an increasingly important role. Today’s customer expects instant access, simple processes, and transparency. Therefore, our investments are focused not only on new products but on the entire insurance journey, from customer awareness and policy purchase to claims administration and settlement.
3. Despite premium growth, insurance penetration in the economy remains very low compared with regional and European countries. In your opinion, what are the main reasons preventing wider insurance penetration in Albania?
I do not believe there is a single reason. It is the result of several factors that have developed over time. First, insurance culture in Albania remains relatively focused on products mandated by law. Second, many households and businesses still view insurance as a cost rather than a risk transfer mechanism. Purchasing power is also a factor, but not the only one. There are markets with comparable income levels that have significantly higher insurance penetration. This demonstrates that financial literacy, trust, product quality, distribution, and customer experience are equally important.
In this regard, the industry itself has a responsibility. We need to communicate insurance in simpler terms, develop products that address real needs, and above all, demonstrate the value of insurance precisely when customers need it most, at the moment of a claim.
4. Large international insurance groups have been operating in Albania for years, yet this has not translated into strong product diversification or a significant increase in voluntary insurance. How do you explain this?
The presence of international groups is extremely important because it brings capital, know how, governance standards, technical expertise, and access to best practices from more developed markets. However, an insurance product cannot be transferred mechanically from a European market into Albania. It must have an economic rationale, address an identifiable need, and meet a level of demand that makes it sustainable. Therefore, the issue is not the lack of products themselves. The challenge lies in creating an ecosystem where consumers understand risk, perceive insurance as valuable, and have the economic means to purchase it.
Our advantage as part of Vienna Insurance Group is the ability to leverage the experience of a major European group and adapt it to the characteristics of the Albanian market. Although Albania is not yet a member of the European Union, SIGMA VIG has chosen to operate according to the standards that characterize European insurance markets. In line with Group requirements and practices, we apply IFRS 17 standards, Solvency II principles, and ORSA (Own Risk and Solvency Assessment) practices. This discipline enhances governance quality, transparency, risk management, and the company’s financial sustainability.
In this sense, we aim to be at the forefront of the market and, through the standards we apply, contribute to its continued development.
5. The market still relies heavily on mandatory insurance, especially motor insurance. What needs to change for voluntary property, health, life, and business insurance to gain greater importance?
A combination of measures is required rather than a single intervention. Financial literacy is fundamental. At the same time, we need more understandable products, simpler processes, wider distribution, and a stronger connection between insurance and the real needs of individuals and businesses. A family that has invested most of its savings in a home should understand that it is carrying significant financial exposure if that property is uninsured. The same logic applies to businesses that have invested in buildings, equipment, inventory, or technology.
The development of bancassurance, digital channels, and new partnerships can also make insurance significantly more accessible. I believe the industry needs to gradually evolve from a product and policy focused approach toward a more advisory relationship, helping customers understand their exposure and manage risk more effectively.
6. Extreme weather events, wildfires, and floods are becoming more frequent, while their economic costs continue to rise. How are climate change impacts affecting risk assessment, premium pricing, and insurance products in Albania?
Climate change is reshaping the way the global insurance industry assesses risk, and Albania cannot remain outside this reality. The frequency and severity of natural catastrophes directly affect risk models, reinsurance capacity, and, over the long term, the pricing of insurance coverage. As part of Vienna Insurance Group, we benefit from access to the expertise and experience of a group operating across multiple markets and addressing climate risk at a strategic level.
However, insurance is only part of the solution. We must increasingly focus on prevention as well. A modern insurance market should not only compensate losses after they occur; it should also contribute to identifying, reducing, and managing risks more effectively. This requires close cooperation among insurers, state institutions, regulators, and other stakeholders, so that prevention and resilience building are treated as shared responsibilities.
7. How would you assess the draft law on mandatory insurance for homes against earthquakes and natural catastrophes? Which elements should be improved before approval?
In principle, establishing a sustainable financial protection mechanism for residential properties against natural catastrophes is an important step for Albania. The 2019 earthquake clearly demonstrated not only the human impact of disasters but also the significant financial exposure faced by both households and the state. For this reason, such a scheme must be designed very carefully. There must be complete clarity regarding coverage, limits, exclusions, premium calculation, claims assessment and settlement, and the relationship between the public mechanism, insurance companies, and the reinsurance market.
A positive development in this regard was the International Forum, “Albanian Natural Catastrophe – Risk & Insurance Solutions,” held in Tirana on 14 May 2026 and jointly organized by the Financial Supervisory Authority, AON Reinsurance, and the Albanian Insurers Association.
The forum brought together representatives of public institutions, the insurance and reinsurance industries, and international experts from AON and Hannover Re, alongside experiences from countries such as Italy and Romania. The fact that this discussion is supported by international expertise and tested models is crucial for designing a sustainable scheme suited to Albanian realities.
From our perspective, it is important that the existing expertise and infrastructure of the insurance market be fully utilized. Insurance companies possess the expertise, networks, policy and claims administration systems, as well as relationships with international reinsurance markets.
Ultimately, the objective should not simply be the creation of another mandatory obligation, but the establishment of a functional mechanism that provides citizens with real protection and enhances the resilience of the economy when disasters occur.
8. What are SIGMA’s key priorities and plans for the coming years? Which products, technologies, or market segments do you intend to expand into?
Our primary priority remains the customer. This may sound like a cliché, but for us it has a very concrete meaning: every investment in technology, products, or processes must translate into a better customer experience. We will continue investing in digitalization and automation, online sales and service channels, and the use of technology to deliver faster and more efficient processes.
From a product perspective, we see substantial potential in health, property, casco, and business insurance while maintaining our strong position in traditional portfolios.
Vienna Insurance Group provides a significant advantage in this process through access to international expertise, technology, advanced risk models, proven market practices, and continuous know how exchange. Our ambition is for technology to be more than just an IT project; it should be an instrument that makes insurance simpler, more transparent, and closer to customers.
At the same time, we are investing just as seriously in our people. Employee well being and creating an environment where individuals can grow are integral parts of our strategy.
A further confirmation of this approach is our recognition as a Best Place to Work for the second consecutive year, an award that reflects our continuous investment in employee well being, development, and engagement. In the near future, SIGMA VIG will relocate to new office facilities that are more comfortable, modern, and designed to encourage collaboration and enhance the employee experience. We also continue to provide ongoing professional and personal development opportunities, including leadership programs both in Albania with internationally certified lecturers and through development programs across various European countries. We believe that a modern company is built not only on products and technology, but above all on people who grow together with it.
9. Following recent changes in the market structure and the reduced presence of foreign groups, how do you see the role of Vienna Insurance Group and SIGMA in the further development of the Albanian insurance market?
Following recent market developments, Vienna Insurance Group is now the only major international European insurance group with a presence in Albania. For us, this is not only a competitive advantage but also a greater responsibility to contribute to the modernization and development of the Albanian insurance market. At the same time, VIG continues to expand and strengthen its position throughout Europe. Today, the Group includes more than 50 insurance and pension companies across 30 countries, serving around 36 million customers through a workforce of approximately 34,000 employees.
In the first half of 2026 alone, the Group reported EUR 9.0 billion in gross written premiums, a profit before taxes of EUR 641.5 million, and a Solvency ratio of 272%, reflecting a very strong financial position and significant capacity for long term growth.
One of the most important recent developments was the Group’s expansion into Germany. In May 2026, Vienna Insurance Group completed the acquisition of NÜRNBERGER Beteiligungs-AG, the largest transaction in the Group’s history, securing 99.2% of the company’s share capital and voting rights. NÜRNBERGER brings a well established brand, approximately 2.6 million customers, and a strong presence in one of Europe’s largest insurance markets. In Albania, VIG’s long term commitment has also been demonstrated through its expansion into life insurance and the establishment of three insurance companies in the local market, enabling the Group to cover a broader spectrum of customer needs, from non life insurance to life and health insurance.
These developments clearly demonstrate that VIG views Albania and the region from a long term perspective. Our role extends beyond the growth of SIGMA VIG. We aim to contribute to higher market standards, innovation, financial literacy, the development of voluntary insurance, and stronger public trust in the industry. Our objective is to bring the expertise and strength of a leading European insurance group to help accelerate the development of the Albanian market and ensure that insurance gradually assumes the role it should have in the economy and in the financial lives of families and businesses.
Published at Monitor magazine, click https://monitor.al/sigurimet-presin-kthesen/