TIRANA, July 3/ATA/ Minister of Finance and Economy Ervin Mete stated today that with the support of the World Bank, there are being examined the best options for the development of a national earthquake insurance program.
Attending the international conference of the Financial Supervisory Authority (AMF) “Development of the Insurance Sector – Opportunities and Challenges in Southeast Europe”, Mete emphasized the significance of this insurance being affordable for citizens and based on the highest standards of the good risk management.
At the same time, Minister Mete underlined the significance of securing agriculture.
“There has been a positive development trend of the insurance market in Albania over the last few years, based on significant legal and regulatory advances, largely aligned with EU directives, as well as based on strengthening of the role and independence of the Insurance Authority Financial Supervision. Just as there have been significant improvements in the key indicators of this sector, such as capital and coverage with provisions”, said Mete.
Underlining the fact that the entire region is exposed to natural disasters and climate change, Mete said that disaster insurance and agricultural insurance are in the focus of regional and international regulators.
“As you are aware, Albania suffered an earthquake in 2019 with serious consequences, devastation and loss of life. Damages caused were estimated at around 1.1 billion Euros, or 7.5% of GDP. Of these, the insurance companies paid about 40 million Euros in damages to the injured citizens and businesses. While for the rest, from 2020 until now, nearly 890 million Euros have been spent from the state budget, for the reconstruction process and for rent bonus payments,” said Mete.
According to the head of public finance, the earthquake highlighted another aspect that voluntary housing insurance is at very low levels and mostly dictated by banks for mortgage loans./p.s./
