Annual Report 2010 03 August 2011 - Banka Qendrore e ...

Annual Report 2010
CBK
h) Cooperation with other Regulatory and Supervision Authorities
Cooperation with foreign regulatory and supervision authorities was followed by more
significant intensity. Thus, a joint examination of the respective banks was done with
colleagues from Bank Regulatory and Supervision Agency of Turkey (“BRSA”), the
supervisory newsletter exchange took place on quarterly basis with Financial Supervision
Agency of Austria (“FMA”), then the mutual information exchange with Central Bank of
Slovenia. Bank of Albania, communication and cooperation with Federal Financial
Supervision Agency in Germany (BaFin) in order to initiate conclusion of a Memorandum of
Understanding between the two institutions, which is expected to be singed in the
beginning of 2011.
It is also worth mentioning the Central European Bank project for strengthening macro
and micro-prudential supervision which added value to supervisory capacity building, and
it also contributed to exchange of experiences and disclosure of the best practice and
standards on financial supervision. On the other hand, this project will continue to be
implemented during 2011 with the second component, where CBK will benefit a technical
assistance in improving the early warning system and macro “stress-test”, as well as the
third component to point out the interstate cooperation aspect with other supervision
authorities by simulating crisis situations.
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4.3. Insurance Supervision
The number of insurance companies operating in insurance industry during 2010 was 11, of
which, ten are non-life insurance companies and one life insurance company. Regarding the
ownership structure, four companies were of foreign ownership, four of mixed ownership,
while three of them were insurance companies being completely under local ownership.
In the course of changes in ownership structure during 2010, two insurance companies with
mixed ownership structure (local and foreign) were completely transformed into foreign
companies.
The total number of insurance policies issued in the end of 2010 reached at 542,097 or 6
percent more than in 2009. The structure of insurance portfolio for 2010 is characterized by
47.6 percent of compulsory motor insurance policies, then 35.6 percent of border insurance
policies and around 16.6 percent of other (voluntary) insurance policies. Life insurance
market still remains with a small share in total insurance portfolio (0.25 percent of policies
of insurance portfolio in 2010).
Gross written premiums during 2010 were characterized with 56.13 percent of compulsory
motor liability insurance, then other (voluntary) insurances with 28.25 percent and border
insurance with 14.64 percent. Life insurance market still remains low with a share of only
0.98% in gross written premiums in 2010.
A considerable growth both in number and in value was recorded by losses paid during
2010. The number of paid losses during 2010 reached at 60,112 losses or 56.5 percent more
than 2009, while the value of paid losses in 2010 was euro 28.1 million or 40.87 percent
compared to that in 2009 which was 39.34 percent. The abovementioned indicators show a
considerable increase in payment of losses in 2010 compared to the previous year which
comes as a result of additional and effective CBK supervision on the control of payment of
losses with purpose to protect the policyholders.
Taking into consideration the role and objectives of Insurance Supervision Directorate in
protection of policyholders’ (clients) interests and protection of financial sector