TIRANA, March 28 /ATA/ – Albania’s Financial Supervisory Authority (AMF) is stepping up efforts to align the country’s insurance sector with the European Union’s Solvency II regime, deepening training programs for its staff and market operators.
Solvency II is a comprehensive EU regulatory framework designed to ensure that insurance companies maintain adequate capital to manage risks and protect policyholders, while improving transparency and overall market stability.
The initiative is being implemented under a financial sector development project supported by the World Bank and funded by Switzerland’s State Secretariat for Economic Affairs (SECO). Training is being delivered by Swiss actuarial firm Prime Re Solution.
As part of the process, experts have presented the results of the first Quantitative Impact Study (QIS), a comprehensive exercise assessing how Solvency II requirements would affect Albania’s insurance market in practice.
The study evaluates data quality, available capital and capital requirements under real market conditions, involving local insurance companies.
The broader assistance program is structured in five phases, following a gradual approach to capacity building and regulatory convergence.
Initial phases focused on standard formulas and provisioning methodologies, as well as the implementation of quantitative reporting templates (QRTs). The program is currently concluding the third phase, centered on the QIS, while advancing into the fourth phase, which addresses the development and use of internal risk models.
The final phase will focus on Own Risk and Solvency Assessment (ORSA), aiming to strengthen insurers’ ability to conduct internal evaluations of risk and capital adequacy in line with EU standards.
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