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Abstract The regulation, no. 53, setting the compensation for motor third party bodily injuries in Albania is amended and has changed on July 1st, 2018. A significant increase in claims cost is expected, with direct consequences for insurers and policyholders. In order to estimate this change, we have conducted an analysis aiming to understand how the new amendment in the regulation would impact claim costs of personal injury. We start with a brief overview of the Insurance market in Albania. We then continue with some more technical data regarding the domestic MTPL, followed by some key highlights, and continue with an introduction of rules and procedures on handling claims covered by contracts of compulsory insurance in the transport sector in Albania. Finally we reveal how the capitalized amount coefficient is calculated and will analyze the impact of change in personal injury claims in the Albanian insurance market.

Impact Analysis of the Change in Personal Injury Regulation in Albania