TIRANA, Oct 31 /ATA/ On Friday, Deputy Minister of Finance Endrit Yzeiri outlined the new draft law “On Insurance and Reinsurance,” which seeks to enhance the current legislation and bring it in line with European standards and directives, aiming for improved risk management in the operations of insurance companies.
Deputy Minister of Finance, Endrit Yzeiraj, announced that the draft law seeks to enhance the stability of the insurance market, promote greater transparency, and safeguard the interests of consumers.
The draft law stipulates that insurance companies must implement a clear framework for identifying and managing risks, including financial, operational, and reinsurance risks.
The system must be fully documented and continuously updated, including risk self-assessment and the ability to cover claims (ORSA).
Shareholders, board members, and key executives will be assessed based on their competence, integrity, and financial capacity. The law also outlines the roles of risk management and compliance functions, as well as the board’s responsibility for approving remuneration policies.
Under the proposed amendments, consumers will receive clear information about insurance products. Contracts may also be signed online or through electronic means, provided the client has confirmed that they fully understand all the information.
The draft law governs the relationships among companies belonging to the same insurance group and ensures that each company maintains adequate capital, without it being counted twice in the calculation of the required funds.
If a company encounters difficulties, the Financial Supervisory Authority may designate a temporary administrator. The law further stipulates two forms of company dissolution: voluntary liquidation (initiated by the company) and compulsory liquidation (when the company cannot fulfill its obligations).
/r.e/a.f/sm/
