1. Mr. Citozi, how would you assess Sigma’s performance during 2024 and the first half of 2025?

The year 2024 was positive for Sigma VIG, despite operating in a market still burdened with challenges. We achieved premium growth above the market average, consolidating our traditional positions not only in the motor insurance segment but also in property insurance segment we consider strategic for long-term development.

In 2025, the trend remained positive: gross written premiums have increased by around 10%, while the overall market has moved at a slower pace. This signals that our strategy is sustainable and is helping us stand out from the competition.

Another key element is human capital. Sigma is continuously recruiting to attract high-quality staff and strengthen our teams at all levels. We train employees not only in the technical skills required by the insurance industry but also in soft skills such as communication, client relationship management, and teamwork, which are equally important for delivering excellent service. This combination of technical expertise and interpersonal skills is one of the factors that has allowed us to maintain high performance and strengthen client trust.

2. What are your expectations for the upcoming period?

We expect 2025 to close with strong results, with a clear focus on growing voluntary insurance. The potential here is significant. Sigma will continue to focus on improving health insurance products, offerings for small and medium-sized businesses, and developing innovative products for individuals. Being part of the Vienna Insurance Group gives us the opportunity not only to offer European-standard products but also to access the best private hospital networks across Europe.

We will apply the same approach in the Kosovo insurance market, where we are present through our local branch. This market also holds potential for becoming a key player and for enhancing the range of services we offer.

3. Why does the Albanian insurance market remain among the lowest in Europe, with less than 1% of GDP?

In Albania, the ratio of non-life insurance premiums to GDP is around 0.9%, while the European average for total insurance premiums exceeds 6%. This significant gap is due to several factors.

First, the per capita income level is still low compared to EU countries. Second, the insurance culture is limited. Citizens often view insurance as an expense rather than a tool for long-term stability. Another factor is the market structure, which has historically relied mainly on mandatory insurance.

The underdevelopment of the broader financial sector in the country has also played a role, limiting access to and use of modern financial instruments, including insurance. Various studies show that limited supply and incomplete access to financial services create serious barriers to expanding the insurance market.

This combination of factors explains why Albania still lags the region and Europe, despite the presence of international companies. However, with rising living standards over the past 7–8 years, citizens are increasingly seeking security and stability. This progress must be accompanied by the adoption of appropriate financial instruments that not only protect what has been achieved but also ensure the continuity of this standard in the future. This principle applies not only to families but also to businesses, whether large corporations or small and medium enterprises—which must protect their capital, people, and long-term projects.

Moreover, the development of the tourism sector has indirectly increased demand for insurance: the number of vehicles in circulation has grown, creating a greater need for coverage; accommodation structures require property and liability protection; and the expansion of lending has increased the need for collateral-related insurance. Another positive element is the growing presence of foreign companies in the Albanian market, which bring with them a developed insurance culture. They seek coverage for their assets and employees, introducing this culture into the workplace and gradually raising awareness among individuals about the importance of personal insurance. In this landscape, the government has also played a key role through economic and legal reforms, creating a more favorable environment for the development of the insurance market.

4. How do you explain the fact that the entry of foreign companies did not provide a strong push for market diversification?

The entry of international groups has been an important development, bringing higher service standards, a broader product range, and greater transparency for the public. However, this has not been enough to trigger the expected transformation of the market.

There are many reasons. The Albanian market is still small in volume, and innovative products require a broad client base and larger premiums to be financially sustainable. Additionally, the environment has not always been favorable for developing new products. Often, there are no incentives for voluntary insurance, while mandatory insurance dominates the market portfolio.

Another factor is the mindset of citizens, who often expect the government to provide solutions in the event of natural disasters or major emergencies. This perception is rooted in tradition. In practice, no state budget can bear the high costs of catastrophes alone. For this reason, individuals and businesses must understand that the long-term solution is not waiting for public aid but building their own financial independence through insurance. Only then can real and sustainable protection be guaranteed—one that does not depend on momentary decisions or resources.

Nevertheless, for Sigma VIG, this has been an opportunity. As part of the Vienna Insurance Group, one of the largest groups in Central and Eastern Europe, we have had the chance to bring best international practices, strengthen our capital, and build a long-term business model.

VIG sees Albania as a market with great future potential. Despite today’s challenges, economic growth and gradual financial awareness provide the foundation for sustainable development. For this reason, the group’s support has given us a clear advantage in being a key player in transforming the local market.

5. The market is still heavily reliant on mandatory insurance. What needs to be done to increase the voluntary insurance share?

It’s true that around 70% of the Albanian insurance market is still dominated by mandatory policies, primarily motor insurance. To increase the share of voluntary insurance, several interconnected efforts are needed:

• Financial education for clients: Insurance is often perceived merely as a forced expense, whereas in essence, it is a vital tool for the financial stability of individuals and businesses. Citizens should view insurance not as a cost, but as an investment in their future way to protect their standard of living and ensure its continuity during difficult times. Likewise, businesses, whether large corporations or SMEs, must understand that insurance is a mechanism that protects their capital, assets, and human resources.
• Customer service: The client experience is crucial. A customer who receives compensation promptly and transparently gains trust in the company and sees insurance as a partner in their activities. For this reason, companies must invest in fast and simple claims management processes. Sigma has taken concrete steps in this direction, reducing the average time for claims settlements and strengthening open communication with clients.
• Development of new products: Voluntary insurance can only grow if it responds to the real needs of the market. This means offering more product types and bundled packages for families, as well as coverage for emerging risks related to climate change and digital activity.
• Institutional support and an enabling legal framework: Beyond the efforts of individual companies, the government has played an important role through incentive policies and legal initiatives aimed at increasing accessibility and attractiveness of insurance for citizens and businesses. In this process, the Financial Supervisory Authority (AMF) has been a key player. Through ongoing reforms and regulatory strengthening, AMF has helped improve transparency and efficiency in the market. Today, damage calculations are publicly accessible on AMF’s website, individuals can calculate their own insurance premiums, and claims processing times have been significantly reduced thanks to newly established standards.

Another sign of progress is the organization of the 2025 Annual Global Conference of the International Association of Insurance Supervisors in Albania for the first time. This initiative positions AMF as an active player not only nationally but also regionally, promoting the exchange of best practices and alignment with European standards. This event comes at a crucial moment for the Albanian insurance market, supporting reform and integration processes aimed at strengthening institutions and the financial sector in line with European norms. If these efforts progress in parallel, the share of voluntary insurance in Albania could approach the levels seen in the region and the EU.

6. How is climate change affecting the insurance market?

Climate change has led to a noticeable increase in natural risks. Floods, storms, and earthquakes have become more frequent, and this has two effects: it increases demand for insurance but also raises the burden on companies.

For Sigma VIG, this is an additional reason to be proactive. We are developing products that better address these risks and advocate for greater public awareness. Albania needs a national strategy for climate risk management, with insurance playing a central role.

7. A draft law on mandatory earthquake insurance was recently published. How do you assess this initiative?

The draft law on mandatory earthquake insurance is an important step toward the country’s financial stability and the protection of its citizens. Albania is one of the most seismically active countries in the region, and the events of 2019 clearly showed that the financial damages can be colossal and unaffordable for the state budget alone.

However, for the scheme to be functional and sustainable, active involvement of insurance companies is essential. This is due to several factors, including the existing infrastructure of insurance companies. They have sales networks with licensed agents, IT systems, and specialized human resources for managing products and claims.

International experience clearly shows that public-private cooperation is the key to success. Models like France’s CATNAT, as well as practices in countries like Germany, Italy, and Croatia, demonstrate that the state provides guarantees and instruments in the event of major disasters, while private companies remain the main mechanism for risk distribution, citizen service, and claims management.

An integrated model where the state offers guarantees and subsidies for vulnerable groups, while private companies manage sales, claims assessment and payment, and reinsurance, would be more sustainable and transparent. If this synergy between the state and the private sector is created, the scheme will gain public trust, be affordable for consumers, financially sustainable, and ensure that after any disaster, individuals and businesses have a real mechanism to recover and continue their lives and activities normally.

8. What are Sigma’s plans?

I’m optimistic that the Albanian market will evolve toward voluntary insurance and the expansion of digital services. The potential is extraordinary. If today we are below 1% of GDP, I believe that in the next five years we can reach 1.5%.

Sigma VIG will be a central part of this transformation, bringing European standards and always being close to the client with real products and fast service.

Our advantage lies in the combination of over 26 years of local experience with the support of an international group with more than 200 years of tradition. Sigma is the company that deeply understands the needs of the Albanian market, while also having access to capital, expertise, and advanced European practices. This combination makes us resilient, innovative, and trustworthy. Our ambition is to be the leader in innovation and trust not only in the Albanian insurance market but also in Kosovo.