Case Study

Microinsurance Pre-Feasibility Study - Albania

What are the factors that affect the feasibility of offering a microinsurance product in Albania?
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This paper reviews the current environment for microinsurance in Albania, and offers a discussion on the potential for increased activities. The paper states that in Albania:

  • There is no formal sector microinsurance product available on a voluntary basis to help low-income families manage risk;
  • The insurance industry has mostly relied on mandated insurance purchases;
  • The insurance market has five insurers, out of which only one offers life insurance;
  • Insurers need new strategies to grow, but are plagued by a lack of innovation;
  • There is strong demand from both the upper and the low- income people for property protection, health care, and life insurances, despite distrust of local insurers, and limited information about insurance;
  • The legal and regulatory environment for microinsurance is improving;
  • However there are several issues that need to be addressed in order to improve the efficiency of microinsurance processes and improve investment opportunities.

The note recommends the following steps for the development of microinsurance in Albania:

  • The people - the market, staff and management - require significant training in understanding insurance and the microinsurance market;
  • Demonstration products could be developed along with marketing strategies for entering the low-income market;
  • It would help significantly if there were a new insurer to focus primarily on the low-income market.

About this Publication

By McCord, M.
Published