206 million euros for earthquake damages - How much can insurance companies pay? AMF: Reinsurance increased by 4% in 2024
In the past year, gross written premiums that were transferred for reinsurance reached 3.71 billion lek. This value has increased by almost 4% compared to 2023.
Reinsurance occurs when an insurance company transfers a portion of the risk it has accepted to another insurance company, or to a specialized reinsurance company. No company is large enough to pay all insurance claims when an earthquake or other such disaster strikes. Small companies tend to be more reinsured than large ones.
In the annual report of the Financial Supervisory Authority, insurance companies have also reported the aggregate net retention rate for earthquake insurance. Based on the reinsurance agreements in force, the insurance market can withstand, without affecting financial indicators, damages of up to about 206 million euros from the earthquake.
In 2024, compared to 2023, an increase in premiums ceded to reinsurance is observed in almost all portfolios. For 2024, the largest share of total ceded premiums is occupied by "Motor" products with about 55.12% of the total and "Fire and other property" with about 31.59%.
Insurance companies are obliged to reinsure in a reinsurance company that part of the insured risk that exceeds the allowed limit of 10% of the capital value. Through reinsurance, insurance companies reduce exposure to large risks, improve capital requirements (solvency), increase the possibility of insuring more risks, and receive technical and financial assistance from reinsurance companies.
According to Standard & Poor's, Fitch, Moody's, and others, the quality of the main reinsurers of the agreements that currently cover the risks ceded to reinsurance by insurance companies results in at least the A rating category, which means even higher quality than required by the regulatory framework in force.
Poll
"May 11 is the true day of every Albanian" - Berisha, from Puka: In Albania there will be no pension below 200 euros
The Chairman of the Democratic Party, Sali Berisha, declared from Puka that May 11 is a day for a decisive turning point for Albanians to place their dreams......
EU employment hits record levels - Europe registers highest figures since 2005
The employment rate in the EU reached its highest level ever recorded in the fourth quarter of 2024, according to new data from the OECD (Organization for......
Schools damaged by the 2019 earthquake – EU4Schools repairs 59 educational facilities!
In the Municipality of Kavaja, the "EU4Schools" Program has made possible the complete repair and reinforcement of 5 educational facilities damaged by the......
What happens after the Pope dies? - Steps to electing a new successor at the head of the Catholic Church
With the death of Pope Francis, the Catholic Church will begin the elaborate traditional rituals that mark the end of one papacy and the beginning of......
China restricts mineral exports - Critical metal controls "hit" international supply
China's export controls on three metals crucial to the defense and chip sectors are keeping shipments at historically low levels despite high prices......
Pope Francis passes away - A voice for the poor who reshaped the Catholic Church
Pope Francis, a voice for the poor who reshaped the Catholic Church but faced fierce resistance, has died at the age of 88, the Vatican said. The Pope's......
Albanian medicinal plants increase presence in the US - American companies buy 177 tons of "Made in Albania" products
Although the 10% tariff imposed by US President Donald Trump on goods imported from Albania has not yet come into effect, where a sector that is greatly......
"The role of women in society is growing" - Albania 2030, Rama: We have more female entrepreneurs
The country's Prime Minister, Edi Rama, in a meeting with women in the city of Kavaja emphasized that the role of women in society continues to be......
