Klajdi Çitozi, president of the Albanian Insurers Association, says in an interview for " Monitor " magazine that the earthquake cost the companies in question 40 million dollars.
Albania, in 2019, experienced an earthquake which cost the insurance market about 40 million euros. The insurance market successfully coped with this situation, thanks to reinsurance contracts and the technical capacity of insurance companies,
he said.
A figure that is not clarified where it comes from, given the reality of a propaganda according to which the reconstruction was carried out through state intervention, or grants. Beyond this aspect, Çitozi is announcing that the insurance market, proven by the Competition Authority to operate on oligopoly logic, will apply tariff increases in almost every sector. According to him, the reason is the increase in costs.
The cost of repairing vehicles and spare parts has increased by an average of 25%. Also, the price of medical services has increased from time to time in various service packages and recently, we have been informed that a general increase will be applied in the medical services provided by private hospitals.
Everyone has also recently felt the increase in the cost of construction, by at least 35%. So we have calculated the insurance policy premium, taking into account the previous costs of these goods and services and we are currently facing the situation where we will pay the damages at increased costs. Even financial investments, which occupy a significant place in the balance sheet of any company, no longer have the real expected return. Thus, as the cost of living becomes more expensive, the demand for voluntary insurance is also declining, he said.
According to him, currently this increase in the premium of contracts is not reflected, but if this performance continues, it is difficult to maintain the situation in these parameters./ Monitor