Only one percent of citizens in Kosovo have life insurance

So has Sami Mazrek, executive director of the Kosovo Insurance Association. Mazreku in an interview given the New Age said that according to the annual BQC report, the insurance industry participates with only 3 percent in the value of financial sector assets. According to him, the banking and pension funds are large, so automatism makes the insurance industry have little participation in asset structure.

“The insurance market is very small, the written annual view (so revenues, not profits) is 84m euros and in terms of penetration (type written/ The country's GDP and density (the per capita-written work) are the smallest in the region (exclude Albania here). One of the reasons for such low figures is the tax system in Kosovo, which charges security contracts with 24.35 per cent of taxes”, Mazreku has said.

It suggests that such tax policy is not met in any country in the region and not talk about EU countries.

In no country will insurance companies be charged by five-liters in revenues, but are taxed in real profit. As for TVS, insurance is released from TVSh in both the region and the EU. These taxes present a lot of cargo for market penetration, as it is a considerable load for the buyer. In addition, the huge number of insurance companies in such a small market has contributed to the low level of insurance prices, which prevents asset accumulate. Also, as a result of the legal regulation of the BQC approved Bonus Malus system, the insurance priority in the largest insurance class is reduced annually. In addition, this, I think has to do with overall economic development in the country, with social well-being, with the purchasing power of citizens”, has declared Sami Mazrek, executive director of the Kosovo Insurance Association.