CMD (counsel of Ministers Decision) no 229, 08/10/1998
CMD no. 229, 28/04/1999
CMD no. 470, 03/10/2002
The above-listed legal framework allows :
• establishment of private insurance companies
• insurance and/or reinsurance activity is carried out by companies, estabilished in the form joint-stock company with foreign or domestic capital, while the foreign companies can exert insurance and/or reinsurance activities in the Republic of Albania (RA) only through their branches in Albania
• an insurance company that operates in the life insurance cannot exert insurance insurance activities for non life
• the insurance and/or reinsurance companies should have fundamental calendar, without including contributions varying from 50-100 million lek, depending on th insurance groups the society will pay in the insurance of damages, and not less than 120 mln if the copmany will operate in life insurance activities
• the insurance and/or reinsurance companies will start their activity anly after after they receive the formal authorization from ISC
• a local or foreign branch insurance compaby can be equiped with an offical authorization from ISC if they meet similiar criteria as:
- it should be founded in the way defined by the Law 8081, dated 7/03/1996
- it should have a business plan drafted according to the demands of this law
- it should possess the minimum guarantee funds
- the effective management of the company should be trusted to physically sound and and proffesionaly capable individuals
- the companies authorized to operate in the field of insurance and/or reinsurances should be supervised ISC, aiming at protecting the consumer's interests
- insurance companies exercising motor insurance business should establish the Motor Bureau, which represents these companies to the domesitc and foreing market
- foreign capital in an insurrance company that want to extend their activity in the territory of the RA thrrough their branches should have an experience of at least 5 years in the country of origin
- foreing capital in an insurrance company according to the Albanian law is unlimited
- the minimum limits of the guarantee fund for an insurance and/or reinsurance company should vary from 30 -60 million lek at the beggining of the activity, and from 50 - 90 mln lek at the end of the second financial year, depending on the insurance classes that the company shall exercise in non-life business; if the company will operate in the field of life insurance it should have a minimum of 120 mln lek at the beggining of the firs year and 180 mln lek at the end of the seccond financial year.
- premiums of voluntary insurance should be defined by the company itsef; premiums of compulsory insurance should be defined by the Minister of Finances
- the compulsory insurance includes the class of civil responsibilities from usage of vehicles , that is the insurance contract of owners of motoric vehicles for third party liabilities within the country territory (TPL); the insurance contract of a owner of a motoric vehicle that has a temporary number plate; the insurance contract for using tho motoric vehicle outside the country's territory (green card); insurance contract of an owner of a motoric vehicle that has a foreign license plate but who has an insurance contract with a domestic insurer (border insurance contract).
- all the insurance contracts are sublect of VAT in the amount of 20%
Insurance Market 
