The General Executive Director of the Financial Supervision Authority, Mr. Ervin Mete presented today in the Parliamentary Committee on Economy and Finance, the Report on the activity of the Authority during 2019. Mr. Mete focused on the main developments of last year, as well as mentioned some from the targets for the coming year, taking into account the effects of the COVID-19 pandemic on the markets under surveillance.
Referring to the earthquakes of September and November, which were the events that marked 2019 in terms of the insurance market, based on current estimates, the value of claims reached the level of 475 million for the event of September 21 and about 3.65 billion for the event of November 26, - informed Mr. Mete. According to the Chief Executive Officer, the earthquake events highlighted the need to expand property insurance coverage, as approximately 2.5% of dwellings have such coverage.
Mr. Mete also informed the Assembly about the regulatory measures taken by the Authority after two natural disasters to guarantee the health of the insurance market, increasing by 34.4% the technical provisions, compared to 2018, which is the largest increase ever realized. over the years.
Referring to the Compensation Fund, the Chief Executive Officer stated that the Authority has continued to monitor the arrears payment process. During 2019, about 604 million ALL in compensations were paid with the object of the Compensation Fund. Mr. Mete noted that the pandemic brought an increase in the number of uninsured assets, to about 22%, a figure that poses a systemic risk to the Compensation Fund and the entire insurance market. The costs incurred for this fund from uninsured assets are transferred to regular insurance policyholders, reflected in their insurance premium. Therefore, action is required in this regard.
The Executive Director stated that the Authority has worked to meet all the recommendations left by the Assembly, with a view to promoting the stability, transparency and reliability of the supervised financial markets, protecting the interests of investors and insured persons, and ensuring law enforcement.
Mr. Mete stressed that the COVID-19 pandemic, depending on the extent of the effects on the markets under supervision, will define significant challenges for the Authority during the rest of this year, but also in the future. "The Authority will continue to monitor developments in supervised markets, while remaining committed to drafting clear protocols for crisis management, in order to amortize their consequences, coupled with the flexibility of decision-making in emergency situations, in line with the recommendations. of European authorities. Also, AFSA aims to improve business continuity plans for the supervised entities, while achieving a high compliance with international standards of insurance and capital markets, "said the CEO.
Mr. Mete stated that during this year the main directions of the Authority's activity, taking into account the impacts of COVID-19 in the supervised markets will be focused on managing the situation and maintaining the stability of supervised markets, effective supervision and development of further markets, digitization, completion of the legal framework and protection of insured persons and investors.