Adela Xhemajli, Deputy Minister of Finance, stated that the goal is to enhance and update the legal framework within the insurance market, noting that the 10 years of law implementation have revealed the need for various interventions to ensure further regulation.

She also highlighted that the goal is to incorporate and address the recommendations provided by the International Association of Insurance Supervisors (IAIS), as part of the process of assessing the alignment of the Financial Supervisory Authority’s (FSA) standards and practices with the fundamental principles of insurance (ICP).

She stated, “The proposed changes are the first step towards transitioning of the insurance market into the Solvency II regime. Implementing this regime is the Authority’s commitment as part of aligning legislation with EU directives and international best practices in the field of supervision.”

Solvency II is the advanced European regulatory framework that establishes new and complex technical and organizational requirements for insurance companies and the Financial Supervisory Authority (FSA).

The three main components of Solvency II are: quantitative requirements related to capital and solvency, requirements for corporate governance and risk management of insurance companies, and requirements for information disclosure and transparency.

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