Summary Description The privatisation of INSIG, the state-owned former monopoly insurance company in Albania, was one of the key transactions on the agenda of the Albanian Government's programme of reforms. INSIG suffered from a lack of specific technical insurance skills and many of the inefficiencies associated with state institutions (over staffing etc.). The proposed TC project aimed at supporting the first stage of privatisation by providing institution building assistance through technical insurance advisory services and training. In addition, the TC project was designed to help increase the value of the company and facilitate the entry of a leading international insurance company in the second stage of privatisation. Main achievements
The EBRD has acquired 19.5 per cent of the capital share of INSIG in the first stage of privatisation. The IFC also participated in this first stage acquiring a similar 19.5 per cent stake. Given that the implementation of the TC was delayed, the second stage of the privatisation (a sale of a majority stake to a strategic investor) was also delayed. Thus, the TC remained relevant and has, to an extent, supported the ability of INSIG to attract a strategic investor and to enhance its capacities before the entry of such an investor. Ultimately the privatisation of INSIG should have been the main outcome of this investment along with the development of INSIG into an insurance company that operates according to international standards. Unfortunately, the privatisation failed and INSIG is currently once again 100 per cent owned by the Government of Albania.