GENERAL DIRECTORATE OF CIVIL EMERGENCIES
Disaster Risk Mitigation and Adaptation Project in Albania
Component IV
Catastrophe Insurance
Albania
Highly exposed to natural disasters
• Albania is highly vulnerable to natural disasters and climate
change;
– Very high seismic risk allover the country
– High flood risk in specific areas (western part and other areas)
• High risk is concentrated in highly populated areas;
• Government has to respond for losses to homeowners and
SME’s from major earthquakes or floods;
• Major events can severely impact Government’s budget and
have negative impact in economical developments:
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Component IV
Situation of Catastrophe insurance in
Albania
• Low public awareness on natural disaster risks
and mitigation alternatives;
• Low level of insurance culture and education;
– Less than 2 percent of homeowners and
SME’s have catastrophe insurance (mostly
linked with mortgaged properties);
• Huge fiscal cost for Government which has to
pay losses in case of a natural disaster.
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Component IV
CRIF Developments
Albania was the first country to join WB
regional SEE CRIF project and become
shareholder of Europa Re
(Joined project in 2008,
became shareholder in 2010)
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Component IV
SEEC CRIF Developments
• A Government Working Group has been
established to ensure effective project
implementation in Albania. The Group comprises:
– Various Ministries
– Financial regulators (Bank and Insurance)
– Other government and public agencies
• Cooperation with insurance sector is ongoing to
guarantee proper technical implementation.
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Component IV
SEE CRIF developments
• Earthquake and flood hazard maps are under final review;
• Earthquake and Flood insurance risk models have been developed
for pricing of insurance products and other risk management
purposes;
• High quality insurance products have been designed for mass
consumers in Albania;
• A survey has been carried out to assess impact of natural disasters
in banking sector;
• Technical work has started to develop weather insurance products
for agriculture sector;
• Other technical work is ongoing to ensure proper project
implementation;
• Insurance regulation is being amended to ensure proper
development of catastrophe insurance in Albania.
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Component IV
SEE CRIF developments
An interactive website was developed under
DRMAP / CRIF project to increase public
awareness and education on impacts of natural
disasters.
Government Institutions supported
development of website with data and
information.
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Component IV
SEE CRIF developments in Albania
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Main functionalities of Consumers’ website
Historical information for past natural disasters in Albania
and in region;
Early warnings and timely alerts in case of natural disasters;
Personalized automated risk reports based on
characteristics and location of property;
Mitigation alternatives for consumers based on risk reports
generated by website;
Promotion of catastrophe insurance and Swiss quality
products developed under SEEC CRIF / Europa Re project.
Ensuring active role of consumers and specific groups with
information, data and comments.
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Macro-Development
• Albanian National Strategy for Disaster Risk
Reduction and for Civil Protection is being
drafted in cooperation with international
organizations.
• Development of catastrophe insurance is
expected to be an important part of National
Strategy
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THANK YOU!
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