Albanian insurance market, dependent on MTPL - Xprimm: Voluntary products remain underdeveloped
Albania ranks first in Central and Eastern Europe for the largest share of mandatory MTPL insurance in its insurance portfolio.
According to data from Xprimm’s latest report on Central and Eastern European (CEE) countries, Albania displays a high share of MTPL insurance in its gross written premiums portfolio. Around 62% of the country’s insurance market was comprised of MTPL in 2025, making it the most important segment in the Albanian insurance industry.
This share is significantly higher than the CEE regional average, where MTPL represents around 23% of gross written premiums. This shows that in Albania, compulsory motor insurance is not only a legal necessity, but also a major source of revenue for insurance companies.
Why so many MTPL in Albania?
The low penetration of voluntary insurance such as life, property or health insurance makes MTPL the main alternative for the average consumer. Albanians choose to pay only for the insurance they have as mandatory and not for other products that are voluntary.
Voluntary insurance, such as life or property insurance, is perceived as a luxury, something that can be postponed until later. Limited financial education and a lack of trust in insurance companies reinforce this behavior.
Life and property insurance constitute a very small part of the Albanian market, with percentages that do not exceed 10% of total gross written premiums. This indicates a great potential for development in these areas, but also a need for financial education and increased confidence in insurance products.
In countries such as Slovenia and the Czech Republic, life and property insurance occupy a larger share of the market, reflecting a higher maturity of the industry. Albania, although growing, still remains focused on basic insurance, with MTPL as the main pillar.
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