Albanians spent 15.6 million euros in eight months for travel insurance abroad

The increase in tourism of Albanians abroad is also contributing this year to the increase in income for insurance companies.

The data of the Financial Supervision Authority (AMF) show that for the eight months of this year, Albanians have spent 1.23 billion lek to secure their means for traveling abroad with the obligatory product of the Green Card.

Compared to the 8-month period last year, gross written premiums for this product have increased by 3.3%.

As the Green Card is sold in Euro, the growth rate this year has been significantly reduced by the effect of the exchange rate. In the absence of the strengthening of the Lek against the Euro, the growth of this product this year would have been double-digit. 

The Green Card or International Motor Insurance Certificate covers all civil liabilities (material and health damages) that may be caused by the use of a motor vehicle abroad.

Every driver of a vehicle with Albanian license plates must be equipped with a Green Card insurance policy when traveling outside Albania. 

Another product related almost exclusively to foreign travel, accident insurance, is showing similar growth. 

According to AMF statistics, gross written premiums in this product reached 429 million ALL or 4.05 million euros, an increase of 4% compared to the same period a year ago.

If we collect the Green Card and Accident Insurance premiums, it can be calculated that Albanians have spent around 15.65 million euros on insurance related to trips abroad during the first eight months of this year. 

INSAT data showed that for the 8th month of 2023, a total of 4.6 million departures of Albanian citizens outside the borders of the country were registered. The number of exits increased by 18.9% compared to the same period a year ago. 

The strong growth of inbound and outbound tourism this year is one of the main factors supporting the growth of the insurance market in the country.

According to AMF data, for the 8th month of 2023, gross written premiums increased by 10.4% compared to the same period last year.

If the outbound tourism has increased the income from the green card and accident insurance, the inbound tourism has also had positive effects on special products, such as the border vehicle insurance policy or CASKO insurance of land vehicles.

While gross written premiums from KASKO insurance increased by 20%.

In KASKO insurance, an important role is played by the car rental business, which is also closely related to inbound tourism.

Gross written premiums from border insurance policies also increased by 1% compared to the previous year, but, even in this case, the growth rate was significantly reduced by the negative effect of the exchange rate./Monitor