The Albanian Insurers Association held a media briefing on Friday to address the latest insurance market developments and the challenges ahead for 2025.

Kadri Morinaj, Chairman of the Association, emphasized that this year began with a major reform: the introduction of risk-based pricing for motor insurance premiums. According to him, this measure not only enhances customer care but also strengthens market sustainability. Albanian insurance companies have welcomed this new premium calculation model, which has long been standard practice among European insurers.

Mr. Çitozi noted that the 2021 insurance law was designed primarily to protect consumers and ensure fairer premium calculations. As a result, the level of compensation for road accident victims has increased steadily each year, reaching €28 million in 2025 compared to €20 million four years ago. He highlighted that the new legal framework has improved transparency, accelerated claims settlement, and updated the compensation formula by adjusting coefficients—leading to higher payouts for claimants. Importantly, victims of accidents involving uninsured vehicles can now also apply for compensation through their own insurer.

One of the key regulatory changes has been the adoption of fairer pricing models based on several risk factors such as engine capacity, vehicle and driver age, and claims history. This system applies not only penalties but also rewards, such as a 5% premium discount for policyholders with a clean record, ensuring greater fairness for customers.

Increased transparency has also improved claims handling. By linking claims systems with the Financial Supervisory Authority (AMF), insurers are now under continuous oversight and contribute to a centralized claims database. This development aligns with the industry’s broader push toward digitalization.

In recent years, insurance companies have also revised tariffs for the Green Card system in Montenegro and later in North Macedonia, reducing costs from €40 to €15. With accurate databases and real-time digital connections to AMF and DPSHTRR, insurers are now better positioned to apply risk-based tariffs fairly and effectively.

Ultimately, these reforms mark an important step forward in creating a more transparent, customer-oriented, and digitally advanced insurance market in Albania.