Starting from January 1, 2026, the application of the bonus-malus system in compulsory motor third-party liability insurance will begin.
The bonus-malus system means more expensive insurance premiums, compared to current ones, for those drivers who have caused damage and lower premiums for drivers who have not caused damage.
However, according to market experts, the difference will be much greater in the case of drivers who have caused damage (malus), while the discount for drivers without a history of damage (bonus) is expected to be modest.
In 2024, the AFSA approved the regulation “On the determination of risk factors included in the calculation of the premium for compulsory insurance products in the transport sector”. This regulation entered into force on 1 January 2025, but in the first year of implementation, the bonus-malus principle was not included among the risk factors, being postponed to 2026.
In calculating the insurance premium, companies follow several key risk factors, such as claims history, including cases where the cause of the accident is not listed in the insurance policy; the engine power of the vehicle; the age of the insured; experience in driving a motor vehicle; use of the vehicle by an entity or an individual; the vehicle's registration district and the age of the vehicle.
The application of the bonus-malus system is provided for in the law “On Compulsory Insurance in the Transport Sector”, which has been in force since 2021. However, the law provides for it as a right of insurance companies, but not an obligation. The implementation of the bonus-malus principle became possible only after the adoption of the regulation “On the determination of risk factors included in the calculation of the premium for compulsory insurance products in the transport sector”.
Even with the approval of this regulation, the market for this product is not showing genuine competition and insurance premiums are almost the same across all companies.
The market share of compulsory motor third-party liability insurance is almost unchanged this year. According to information from the Financial Supervisory Authority (AMF) for the 9-month period of 2025, the market for this product is led by Sigal, with 20.64% of gross written premiums, up from 20.6% a year earlier. It is followed by Eurosig, with 15.19% (up from 15.25% a year earlier) and Sigma, with 14.59% (up from 14.6% a year earlier).
Even for other companies, the change in market share is negligible compared to the same period a year ago.
The problem of competition in the TPL market was raised again this year during reports to the Albanian Parliament by the AFSA and the Competition Authority. The MPs underlined that the freezing of the market share between companies for this product is a fact that clearly shows the lack of effective competition.
