Description of methods and sources for Albania - INSTAT

IPA 2009 Multi-beneficiary StatisticalCooperation Programme3.16.3 Insurance activities and other financial activities3.16.3.1 IntroductionInsurance corporations, non-banking financial activities and pension funds aresupervised by the Financial Supervisory Authority (FSA) established in 2006, whichis a public independent institution. The FSA is responsible for the regulation andsupervision of non-banking financial system and the operators of the sector. Themain areas of their activity are regulation and supervision:of insurance market and its operators;of securities market and its operators;of private supplementary pensions market and its operators;of other non-banking financial activities;Insurance market is the largest and most developed market across non-bankingfinancial markets, whereas securities and private pensions markets are in their initialdevelopment stage. Albanian insurance market, despite challenges and issues, hasrecently been subject to a positive development trend and it presents a large potentialin terms of quality and quantity expansion. There were ten insurance companies inthe market in 2006, of which seven are non-life insurance companies, two are lifeinsurance companies and one company offers both non life and life insuranceproducts.The securities’ market continues to be prevailed by trading in the primary andsecondary market of the Government debt instruments (T-Bills and T-Bonds), whilethe securities stock market remains still undeveloped and mainly limited in the offexchangemarket registered with the Albanian Share RegisterWith the adoption of Law ”On Supplementary Pensions and Private PensionsInstitutions” as of 1995, the activity of the first companies in private pensions areacommenced in 2006. Regardless of this fact, the existing private pension’sinstitutions have a number of contributors, which stands at minimum levels requiredby legal framework. Three pension companies operate in the private andsupplementary pensions market. Range of activity in this market is limited.3.16.3.2 Data sources and methodsFinancial Supervisory Authority receives annual financial statements and passesthem in an aggregated form.In the standard data source for financial intermediation, auxiliary activities tofinancial intermediation are not included in the estimation of the indicators.Gross valued added of this branch in 2006 is estimated at 2 423 million LEK or 0.30percent of the total of gross value added71/236