In today’s uncertain market environment—shaped by climate change, cyber threats, and global economic shifts—risk management has become one of the most strategic functions for insurance companies. SIGMA VIG, part of the Vienna Insurance Group, stands out as a key player in the Albanian insurance market with a proactive and long-term approach to risk.

In this exclusive interview, Mr. Albion Nasaj, Chief Risk Officer at SIGMA VIG, shares his vision on how risk should be viewed—not merely as a threat, but as an opportunity to foster resilience, trust, and sustainable growth. He discusses the challenges of the Albanian market, the impact of digitalization, the role of the international group, and the real-world experiences that have shaped SIGMA VIG’s risk management strategy.

1. Mr. Nasaj, you lead one of the most critical functions in an insurance company – risk management. How do you define risk in the context of SIGMA VIG?

In our industry, risk is not merely a threat – it’s an opportunity to be more cautious, more strategic, and more resilient. At SIGMA VIG, risk is defined as any internal or external factor that could impact our ability to fulfill promises to clients and shareholders. Effective risk management is a balancing tool between protecting the company and enabling its growth.

2. What are the main risks an insurance company faces in the Albanian market?

The Albanian market is dynamic, with challenges ranging from the frequency of claims in motor lines to the adoption of new European regulations. In many sectors of the industry in Albania, the lack of operational standards leads to greater variance in risk assessment. Specifically, we’re seeing increased climate risk, operational risk due to rapid digitalization, and exposure to reputational risk in a market with growing transparency.

3. How does the risk management process work within SIGMA VIG?

We treat risk management as an integrated process at every level of the company. It begins with identification, followed by analysis, evaluation, and the preparation of an implementation plan. We have an extensive control framework and use statistical models and stress tests to simulate potential impacts. What makes the difference is the collaboration between departments. Risk is not the responsibility of a single department—it’s everyone’s responsibility.

4. How does digitalization affect the risk profile of an insurance company today?

Digitalization has transformed how we operate, but it has also introduced a new spectrum of risks—from cyberattacks to unexpected system outages. SIGMA VIG is heavily investing in cybersecurity, staff training, and continuous audits to minimize these risks. On the other hand, technology helps us identify and manage risk in real time more effectively.

5. Can you share a specific case where a risk-related decision proved critical for the company?

Certainly. During floods or earthquakes in recent years, thanks to our climate risk assessment system, we had reduced the company’s exposure by carefully selecting reinsurance coverage for natural disasters—credit also goes to the international group we are part of. This allowed us to respond immediately, compensate clients in record time, and maintain financial stability.

6. SIGMA VIG is part of the Vienna Insurance Group (VIG), one of the largest insurance groups in Central and Eastern Europe. How does this influence your risk management approach in the Albanian market?

Being part of VIG is a strategic advantage. We operate with full decision-making independence in the local market, but with unmatched financial support and international expertise. This means we have access to best European practices in risk management, advanced statistical models, and strong recovery capacities in times of crisis. In a market where many companies operate by meeting only the minimum legal requirements, we have the luxury of building for the future—not just surviving the present.

7. How do you see the future of the risk function in the insurance industry?

The future demands more foresight, not just reaction. Risk will increasingly be managed through artificial intelligence, big data analytics, and cross-sector collaboration. But at its core, it will remain a human function—because interpretation and decision-making require professional judgment and integrity. At SIGMA VIG, we are building this balance between technology and human experience.

8. A message for young people who want to pursue a career in risk management?

Be curious. Risk is not fear—it’s a deeper understanding of reality. This profession requires integrity, critical thinking, and the ability to see beyond what’s visible. In an uncertain world, risk experts will be among the most sought-after professionals.