1. 1 9-Jun-14 Meeting with the insurance companies We protect the consumers We promote the markets We honor the law

2. 2 9-Jun-14 Content I. Transport insurance draft new law II. Regional defense program against nature disasters

3. 3 9-Jun-14 I. Brief presentation on the draft law On Transport sector mandatory insurance

4. 4 9-Jun-14 Market developments (Existing law adopted in 1992) Indispensability of organization improvement and harmonization Establishment of AFSA as an independent regulator Functions and organization of AIB Reflection of international markets trend European Directives Other mandatory insurance in transport sector Incorporation of new concepts All parties have supported the idea of a new law Indispensability

5. 5 9-Jun-14 Legal Basis Existing legal framework European Directives Similar laws of European Countries (Croatia, Bulgaria, Italy, etc.) drafted over the recent years. Regulatory framework of Bureaus Board Legal Basis of the Draft

6. 6 9-Jun-14 1. Expansion of the low scope with other transport mandatory insurance; 2. Information Center (about policies and claims); 3. Improvement of claims infrastructure; 4. Institutional setup efficiency and harmonization; 5. Enforcement improvement; New

7. 7 9-Jun-14 Insurance of legal liability of aircraft owners for claims that they may incur on third parties Insurance of legal liability of ship owners for claims that they may incur on third parties Passengers mandatory insurance against public transport accidents to be expanded to all public transport sectors inside the territory including: Urban, interurban and international transport; Taxicab transport; Transport by sea, river and lake sailing vessels for tourism purposes; Aircraft transport; Railway and cable car transport; 1. Scope expansion

8. 8 9-Jun-14 Provision of Directives IV and V for motor insurance, adaptation of article 5 and 4b (respectively). Information on all policies and claims (internal TPL, green card, border policy); Financing of the establishment and operation of the center; Information exchange with other public transport and police authorities. 2. Information Center

9. 9 9-Jun-14 The concept of direct compensations in the case motor liability material claims (with agreement between parties); The concept of psychological integrity damage, the so- called moral claim, with the corresponding sub-limits; Procedures and deadlines concerning claims settlement in compliance with the European directives 3. Improvement of claims infrastructure

10. 10 9-Jun-14 Transfer to AFSA of the authority to issue bylaws pursuant to the law. Bylaws on the insurance conditions and technical basis of calculating the premium rates (Article 10), etc. Bureau charter, the contributions and the regulations for the guarantee fund and the compensation fund (Articles 48, 49, 50). Bureau Board composition consisting of the participation of the representatives fro the Ministry of Finance, Ministry of Public Works Transport and Telecommunications, Ministry of Interior ad representatives elected by the assembly (insurance companies); Annual reporting of the Bureau to the AFSA on the financial situation and the obligations. 4. Harmonization of institutional organization

11. 11 9-Jun-14 Defining of clear sanctions for offences caused by any entity: insurance company; Bureau, citizen, etc. Sanctions defined for the first time such as violation of claims adjustment and payment procedures. 5. Enforcement improvement

12. 12 9-Jun-14 Decreasing of the number of uninsured persons in motor insurance (coordination between the information center and the transport authorities); Insurance of all aircrafts and ships for the liability; Improvement of companies behavior concerning claims; Enhancement of the efficiency and cooperation across all structures; Better protection of the consumers and companies interests; Harmonization with European Directives in the frame of SAA implementation. Expectation

13. 13 9-Jun-14 Initial draft – completed. Presentation of the draft to the insurance companies and the publication of the draft in official sites of three institutions (24 June). Comments by stakeholders. Final draft. Adoption by the Minister. Adoption by the Council of Ministers. Adoption by the Parliament of Albania. Timeline

14. 14 9-Jun-14 II. Defense Program against Nature Disasters for the South Eastern Europe (SEE) (World Bank Program)

15. 15 9-Jun-14 Minimizing of the financial risk of the house owners and small and medium size businesses against nature disasters; Minimizing of financial effects on the state budget in case of disaster; Increasing the number of preventive measures against disasters. Program goals

16. 16 9-Jun-14 Scheme established to provide insurance coverage against nature disasters (earthquakes, floods, landslides) in SEE countries; Under the ownership of and managed by SEE countries; Initial capital by SEE countries as per the minimum limits of European directives (projected to be 30 million Euro); Scheme – aggregate of disaster regional risks; geographic diversification and according to the risks in favor of insured persons; Aggregated risk allocation to reinsurance and capital markets; Trading of policies by the insurance companies of each country; Registration of the scheme as an insurance company in one of the EU countries and agreements with the supervisor of each SE country concerning selling the business. Organization and management