09 2010 JEI Vasilika Kume Edited Final M

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Innovation Management in the Insurance Sector in Albania

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Innovation Management in theInsurance Sector in Albania

Prof. Dr. Vasilika KumeFaculty of Economy, University of Tirana

e-mail: [email protected]

Dr. Zana Xhuka, Vice MinisterMinistry of Defense, Albaniae-mail: [email protected]

Manaxhimi novator ne sektorin esigurimeve ne Shqiperi

Prof. Dr. Vasilika KumeFakulteti i Ekonomisë, Universiteti i Tiranës

e-mail: [email protected]

Dr. Zana Xhuka, Zv. MinisterMinistria e Mbrojtjese-mail: [email protected]

Abstract: This study uses structured questionnaires to explore the innovationmanagement process involving companies in the insurance sector in Albania. Theobjectives of this study are to give e brief history of the Insurance Sector in Albania(start-up problems and challenges) and to identify components of the implementation of innovation management in this sector. The hypothesis of this study concerns the impact of innovation management in the financial performance of companies in the study. The

results show that most companies apply the elements of strategic management and areinvolved in the planning process of the future.

Key words: vision, mission, strategic objectives, financial goals, analytical techniques

Abstrakt : Ky studim ka përdorur pyetësorët e strukturuar për të eksploruar procesin përfshirjes së manaxhimit strategjik në kompanitë e sektorëve të ndryshëm.Gjithashtu, janë përdorur raportet vjetore të kompanive për të parë performancënfinanciare të një kompanie. Hipoteza e këtij studimi lidhej me ndikimin e manaxhimit strategjik në performancën financiare të kompanive të studimit. Rezultatet e këtij studimi treguan se në shumicën e kompanive elementët e manaxhimit strategjik zbatoheshin dheishin të përfshirë në procesin e planifikimit të së ardhmes.

Fjalët kyçe: vizioni, misioni, objektivat financiare, qëllimet financiare, teknikat analitike

І . Insurance Market in Albania

1. Brief History

The insurance sector is the one that hasundergone significant growth in recentyears ( Koci et al., 2002 ).

І . Tregu sigurimeve ne Shqiperi

1. Historik i Shkurter

Sektori i sigurimeve është ndër sektorëtqë ka pësuar rritje të rëndësishme vitetee fundit ( Koci et al., 2002 ).



Vasilika Kume, Zana Xhuka

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Despite this "boom", Albania is stillconsidered a country with under-developed insurance market incomparison with countries in the region.This fact is attributed to factors related tothe development of an economy still intransition, still weak culture of insuranceand, in particular, low levels of incomes.Organised forms of the insurance sectorin Albania date back before World War II.Companies that have operated in Albaniahave been one English company"Lloyd's", which has been present inAlbania since the 1900s, and an Italiancompany called "Societe GeneraleAssicurazione Fiume’’.If we summarise the subsequent historyof insurance sector in Albania, then we

can mention:• 1948 - the Institute of Health

Insurance was established.• 1954 – a merger between Health

Insurance and The Savings Bank wasconducted.

• 1991 – The two institutions mentionedabove were separated again. TheInsurance Institute of Albania (INSIG)was set up. It was built and organisedas a commercial company, with thestate as a primary shareholder,

represented by the Ministry of Finance.• The period after 1991 can be termed

as the period of "blooming" of theinsurance market. The followingmoments are to be mentioned as theachievements of this period:o Creation of necessary HR.o Membership on the International

Bureau of Green Card.o Establishing cooperation and

reinsurance with internationalpartners, which brought thenecessary knowledge to Albaniaalong with high standards of thetime.

INSIG, owned 100% by the AlbanianGovernment, would represent the onlymonopoly until 1999 when the firstprivate insurance company, SIGMA, wasestablished, to be followed a year later bySIGAL. In 2004 the Albanian governmentsold 39% of the stake contributions of INSIG to EBRD and IFC, the first step tofull privatisation of INSIG. Today'sinsurance market includes eightinsurance companies.

Pavarësisht nga ky ”boom”, Shqipëriaakoma konsiderohet me një sektor tëpazhvilluar të tregut të sigurimeve,karahasuar me vendet e tjera të rajonit.Ky fakt është pasojë e zhvillimitekonomik, akoma në tranzicion dhekulturës së dobët të sigurimeve dhe nëvecanti nivelit të uletë të të ardhurave.Format e organizuara te sigurimeve neShqiperi datohen para luftes se dyteboterore. Kompanite qe kane operuar neShiperi kane qene kompani angleze si

“Lloyd’s”, e cila ka qene prezente neShqiperi që në 1900 me filiale ne Durresdhe Vlore, shoqeri italiane si “SocietaAssicurazione Generale Fiume”.Nese do te permblidhnim histrorikun emepasshem te sigurimeve ne Shqiperi,

atehere do te veconim:• 1948 - Krijohet Instituti i Sigurimeve

Shendetesore.• 1954 - Kryhet bashkimi i Sigurimeve

Shendetesore me Arkat e Kursimit.

• 1991 – Behet ndarja e dyinstitucioneve te siperpermendura.Krijohet Instituti i Sigurimeve teShqiperise (INSIG), i cili ishtendertuar dhe organizuar si shoqeritregtare me aksioner kryesor shtetin, i

cili perfaqesohej nga Ministri iFinancave.• Periudha pas vitit 1991 mund te

cilesohet si periudha e “lulezimit” tetregut te sigurimeve, vlen per t’uvecuar si arritje te kesaj periudhemomentet e meposhtme:o Krijimi i burimeve njerezore te

nevojshme.o Anetaresimi ne Byrone Nder-

kombetare te Kartonit Jeshil.o Krijimi i bashkepunimeve ne

fushen e risigurimeve me partnereRe, te cilet sollen ne Shqiperinjohurite e nevojshme krahasstandarteve me te larta te kohes.

INSIG, 100% ne pronesi te shtetitshqiptar, do te perfaqesonte monopolin evetem deri me 1999 kur themelohetkompania e pare private e sigurimeveSIGMA, e cila do te ndiqet nje vit mevone nga SIGAL. Me 2004 qeveriashqiptare shet 39% te aksioneve tetINSIG tek IFC dhe Berzh, hapi i pare qeprivatizimin e plote te INSIG. Sot tregu isigurimeve numeron 8 kompani.




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2. Insurance in Albania after 1991The monopoly position held by INSIG hascreated for this company the advantageof acquiring considerable capital, qualifiedstaff, broad-based clientele and settinginsurance premiums, which allow a higherprofit margin. The transition from amonopoly position in a competitivemarket was accompanied by problems forINSIG.

2007 - Age of major privatisationsWhile the Albanian Government wasdeclaring that the privatisation of INSIGwould take place in 2007, two leadingcompanies in the market, SIGMA andSIGAL, announced that they werepartially bought by two big Austrian

companies such as Vienna (75% of SIGMA) and Uniqa Group (46% of theSIGAL). Through the acquisition of asubstantial portion of the shares of thesecompanies, they became the majorplayers in the insurance market inAlbania. For a brief moment,Interalbanian, a new company came onthe market, but momentarily announcedit had sold part of its stake (50%) toASPIS Group, a well-known Greekcompany.

II. Application and effects of innovation management in theinsurance sector

To analyse the rate of application andeffects of innovation management in theInsurance Sector of Albania, thetraditional method of research byquestionnaires was used. Thequestionnaires were distributed to theparticipants in this study, either directlyor through electronic communication.This study population consisted of registered companies in the insurancesector (10 companies).Since the number of companies operatingin this sector was very limited, it wasthought that all companies operating inthis sector could be included in the study.Regarding the performance of companies,annual reports were analysed and high-level managers were interviewed.The questionnaire used was structured. Itconsisted of 22 closed questions and sixopen questions.

2. Sigurimet Ne Shqiperi Pas 1991Pozita monopolistike e mbajtur nga INSIGi krijoi kesaj kompanie avantazhin ekrijimit te nje kapitali te konsiderueshem,trajnimin e nje stafi te kualifikuar, njebaze te gjere klientele dhe vendosjen eprimeve te sigurimit, te cilat lejoninmarzhe te larta fitimi. Kalimi nga njepozite monopolistike ne nje tregkonkurrues u shoqerua me probleme perINSIG.

2007 – Epoka e privatizimeve te medhaNderkohe qe qeveria shqiptaretrumbetonte me te madhe se do teprivatizonte INSIG brenda 2007, dykompanite lider ne treg SIGAL dhe SIGMAshpallen se ishin privatizuar pjeserisht.Dy kompani te medha austriake si Vienna

RE (75% te SIGMA) dhe Uniqa Group(46% te SIGAL) jane bere aktorekryesore ne tregun e sigurimeve neShqiperi nepermjet blerjes se nje pjese tekonsiderueshme te aksioneve te ketyrekompanive. Nuk vonoi dhe kompania e rene treg, por me nje rritje te shpejte,Interalbanian, njoftoi se ka shitur njepjese te aksioneve te saj (50%) tekASPIS Group, kompani e mirenjohurgreke.

II. Aplikimi dhe efektet e manaxhimitnovator ne sektorin e sigurimeve

Per te analizur shkallen e aplikimit dheefektetet e manaxhmit strategjik neseltorin e sigurmeve ne Shqiperi, eshteperdorur metoda tradicionale e kerkimitnepermjet pyetesoreve. Pyetësorët janëshpërndarë tek pjesëmarrësit e këtijstudimi ose në mënyrë të drejtpërdrejtëose me anë të komunikimit elektronik.Popullata e këtij studimi përbëhet ngakompanitë e regjistruara në sektorin esigurimeve (10 kompani).Meqenese numri i kompanive që operojnënë kete sektor është shumë i kufizuar umendua që të gjitha kompanitë teperfshihen ne studim. Persa i perketperformancës se kompanive, u studjuanraportet vjetore dhe u untervistuanmanaxheret e nivelit te larte.Pyetësori i përdorur ishte i strukturuar. Aipërbëhej nga 22 pyetje të mbyllura dhe 6pyetje të hapura.




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The first section referred to general dataof the interviewee. The second section of questions was related to variouscomponents of innovation management,such as mission, vision, strategic andfinancial objectives, analytical methodsand formulation of strategy, responsibilityfor developing strategy and strategicmanagement, business strategies andcommunication strategy.The aim was to select individuals inanalogous levels in management to fillthe questionnaires, so that the resultsobtained would have a good comparativebase. From the analysis of the datacollected from questionnaires, it wasconcluded that the majority of respondents (70%) had more than eight

years experience in the sector, while 55%of companies surveyed had over 8 yearsexperience in the market.The number of companies studied was n= 9, while the number of questionnairesused was n = 36.

III. Discussion and analysis of results

1. Vision, MissionSince strategic management is directly

linked with the vision and mission of thecompany, clear objectives and designingstrategies to achieve these objectives,the questionnaire investigated if thesecompanies had their vision and mission.All individuals asked answered positivelyto these two elements. Although it isworth noting that articulation of thevision and mission is very clear in middleand higher management levels, there isconfusion between these two elements.Interesting visions were "the world has300 years that provides everything, whydo we not?''

To see how the participants in the studyassessed the institution and the servicesit offers, the respondents were asked:Why do customers prefer your company?Some of the common responses were:• We offer nice service through a staff,

trained and qualified in the field of insurance.

Seksioni i parë i referohej të dhënave tëpërgjithshme te te intervistuarit. Nëseksionin e dytë pyetjet lidheshin mekomponentët e ndryshëm të manaxhimit,sic janë: misioni, vizioni, qëllimetstrategjike dhe financiare, metodatanalitike dhe formulimi i strategjisë,përgjegjësia për manaxhimin strategjik,strategjitë e biznesit dhe komunikimi istrategjisë.U synua qe per plotesimin e pyetesorevete perzgjidheshin persona ne niveleanaloge menaxheriale, ne menyre qerezultatet e perftuara te kishin nje bazesa me te mire krahasimore. Nga analiza ete dhenave te mbledhura nga pyetesoretu konstatua se shumica e teintervistuarve (70%) kishin me shume se

8 vite eksperience ne sektor, nderkohe qe55% e kompanive te sudjuara kishin mbi8 vjet eksperience ne treg.Numri i kompanive qe u studjuan ishte n= 9, ndersa numri i pyetesoreve teperdorur ishte n = 36.

III. Diskutimi dhe analiza erezultateve

1. Vizioni, MisioniDuke qene se Menaxhimi Strategjik lidhet

direkt me vizionin, misionin e kompanise,objektivat e qarta si dhe hartimin estrategjive per te arritur objektivat,pyetesori hulumtonte se sa nga ketokompani kishin vizionin dhe misionin etyre. Te gjithe individet e pyetur u janepergjigjur pozitivisht pyetjeve per keto dyelemente. Megjithese verehet seartikulimi i vizionit dhe misionit eshteshume me i qarte ne nivelet emenaxhimit te mesem dhe te larte,verehet gjithashtu se ka nje konfondimndermjet ketyre dy elementeve. Vizionetme interesante ishin “bota ka 300 vjet qesiguron gjithcka, perse te mos e bejmedhe ne?’’ Për të parë se si e vlerësoninpjesëmarrësit e studimit institucionin dheshërbimet që ai ofron, te intervistuarit

jane pyetur: Pse klientet preferojnëkompanine e tyre?Disa nga pergjigjet kryesore ishin:• Ofrojme sherbim te kulturuar

nepermjet nje stafi te pergatitur dhete kualifikuar ne fushen e sigurimeve.




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• We offer a guarantee for the bestservice based on long experiencewithin the market and a qualifiedstaff.

• A company that provides security aspart of an international group. Thecompany history shows a professionalorganisation.

Although all respondents mentioncorrectness in the treatment of damages,in fact the AMF data indicate somethingelse. Damage/Prime ratio for 2009 is23% ( AMF, 2007 ), from 30% in 2008 andwith 45% average in the region.

2. The development of strategicobjectives

Asked which the main areas were wherethe company had set targets for thefuture, the respondents put emphasis onincreasing market share (31%) and highlevel services (25%) (See Table 1).

Ofrojme garanci per sherbimin me temire, bazuar ne eksperiencen me te gjatene treg dhe staf me te kualifikuar.• Siguria qe ofron kompania si pjese e

nje grupi nderkombetar. Historia ekompa-nise tregon per nje organizateprofesionale.

Pavaresisht se te gjithe te pyeturit per-mendin korrektesen ne trajtimin edemeve, ne fakt te dhenat e AMF-setregojne dicka tjeter. Raporti deme/primeper vitin 2009 eshte 23% ( AMF, 2007 )nga 30% ne 2008 dhe nga 45% qe eshtemesatarja e rajonit.

2. Vendosja e objektivave strategjike

Te pyetur se cilat ishin fushat kryesore ku

kompania kishte vendosur objektiva perte ardhmen, te intervistuarit kane venetheksin ne rritjen e pjeses se tregut(31%) dhe ne sherbimet e nivelit te larte(25%) (shih tabelen 1).

Table 1: Main fields where strategic objectives are developedTabela 1: Fushat kryesore ku jane hartuar objektiva strategjike

Strategic objectivesObjektivat strategjike %

Increase service qualityRritja e cilesise se sherbimit 19

Improve company imagePermiresimi I imazhit te kompanise 13

Increase market shareRritja e pjeses se tregut

31

High service levelNivel I larte sherbimi 25

Improve the position of the company in the industryPermiresimi I pozicionit te kompanise ne industri 6

OtherTjeter 6

It is positive that these two elements areselected by a majority of respondents,and in this case we see a positivecorrelation between market share growthand service delivery level. Since theinsurance market in Albania is a price-ledmarket, these data indicate that thecompanies have reached a kind of maturity in terms of importance of theservice offered.

3. Financial GoalsRegarding the financial goals of thecompany, it can be noted that the mainfocus is “increasing sales" (47%) andincreasing the profit margin (33%) (See

Figure 1).

Duhet theksuar se eshte pozitive qe ketody elemente jane perzgjedhur ngashumica te intervistuarve, dhe ne keterast vihet re nje korrelacion pozitiv midisrritjes se pjeses se tregut dhe ofrimit tesherbimeve te nivelit te larte. Duke qenese tregu i sigurimeve ne Shqiperi eshtenje treg i udhehequr nga cmimi, keto tedhena tregojne se kompanite kane arriturnje lloj pjekurie ne lidhje me rendesine esherbimit te ofruar.3. Qellimet FinanciarePersa i perket qellimeve financiare tekompanise, vihet re se fokusi kryesoreshte“rritja e shitjeve” (47%) dhe rritja emarzhit te fitimit (33%) (shih grafikun 1).




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It is worth mentioning as a positive factthat the data show that more importanceis placed on increasing sales than onprofit margin. However, ROI is notmentioned in any case, which shows thelow level of investment by thesecompanies.

Vlen te theksohet se eshte pozitiv fakti qete dhenat tregojne se i kushtohet meshume rendesi rritjes se shitjeve se samarzhit te fitimit. megjithate nuk eshtepermendur ne asnje rast ROI, gje qe fletper nivel te ulet te investimeve nga ketokompani.

33%

7%

30%

20%

10%

0% 5% 10% 15% 20% 25% 30% 35%

Increasing profitmargin

Increasing of ROI

Increasing of profit

Sales growth

Others

Rritja e norms se fitimit

Rritja e ROI

Rritja e fitimit

Rritja e shitjeve

Te tjeter

Figure 1. The fields where financial objectives are developed

Fig. 1: Fushat ku objektivat financiare jane hartuar

4. The review of objectivesProcessing of the data shows that thereview of strategic objectives by smallercompanies is done in one year period,while large companies review them inperiods of 1-3 years. So it is noted thatthere is a positive correlation betweenthe company size and the period in whichstrategic objectives are reviewed. Thereview of financial goals is done mainlyfor the period of 1-3 years (63%), whichindicates a kind of conservatism inreviewing the company's financial goals(Table 2).

4. Rishikimi i objektivaveNga perpunimi i te dhenave rezulton serishikimi i strategjive nga kompanite evogla behej ne periudha 1 vjecare,nderkohe qe kompanite e medha irishikojne strategjite ne periudha 1-3vjet. Pra eshte verejtur se ka njekorrelacion pozitiv midis madhesise sekompanise dhe periudhes se rishikimit teqellimeve strategjike. Rishikimi iqellimeve financiare referuar te dhenavete mbledhura behet kryesisht perperiudha 1-3 vjet (63%), gje qe deshmonper nje lloj konservatorizmi ne rishikimine qellimeve financiare te kompanise(tabela 2)

Table 2: Review of objectivesTabela 2: Rishikimi I objektivave

Review of objectives (%)Rishikimi I objektivave (%)

PeriodPeriudha

StrategicStrategjik

FinancialFinanaciar

In one year / Ne nje vit 37 37

1 - 3 years / vjet 38 63

3 - 5 years / vjet 25 -

5 - 10 years / vjet - -




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5. Use of analytical methods andformulation of strategyTo the question, 'Do you study theinternal and external environment of your organisation before you make thestrategic changes?’ all candidates haveresponded positively. It should beemphasized that these answers must betaken with reserve, because of theimpact of subjectivism. Most (50%) relyon official sources of information on theinsurance market, which is the AMF,while a significant portion (33%)declares that they make market studies.(See Figure 2).

As mentioned above, in the insurancemarket there is a considerable

informality level, which emphasizes theneed to engage more companies inmarket research. This should be done inorder to design strategies that take intoaccount the full number of factors.

5. Perdorimi i metodave analitikedhe formulimi i strategjisePyetjes, ‘A studjoni mjedisin ebrendshem dhe te jashtem teorganizates tuaj perpara se tendermerrni ndryshime strategjike?, tegjithe te interesuarit i jane pergjigjurpozitivisht. Duhet theksuar se ketopergjigje duhen marre me rezerve, pershkak te ndikimit te subjektivizmit. Pjesame e madhe (50%) mbeshteten tekburimet zyrtare te informacionit mbitregun e sigurimeve, qe eshte AMF,nderkohe qe nje pjese e konsiderueshme(33%) deklarojne se bejne studimetregu. (shih grafikun 2)Sic u permend me siper ne tregun esigurimeve ka nivel te konsiderueshem

informalizimi, gje qe thekson nevojenper angazhimin e kompanive ne studimine tregut. Kjo te behet me qellim qe ntehartohen ato strategji qe marrin neconsiderate nje numet me te madhfaktoresh.

50%

17%

33%

0% 10% 20% 30% 40% 50% 60%

AMF – Formal Source

By Mouth

Market Research

AMF – Struktura Formale

Gojarisht

Kerkim tregu

Figure 2. The sources of information

Fig: 2. Burimet e informimit

Asked for the competition weapons theyuse in the insurance market place, 35percent consider quality of service as themost basic one, while 25 percent putemphasis on price reduction and increaseof qualification of employees.According to respondents, the mostcommonly used techniques for strategicanalysis are SWOT matrix (38%) anddifferent mathematical and statisticalmethods (see Table 3).

Te pyetur per armet e konkurrences qeperdornin kompanite e sigurimeve neluften e tregut, 35 perqind konsiderojnesi me themeloret cilesine e sherbimit,ndersa 25 perqind vene theksin ne uljene cmimit dhe rritjen e nivelit tekualifikimit te punonjesve.

Sipas te intervistuarve, teknikat me teperdorshme per analizat strategjike janematrica SWOT (38%) dhe metoda tenryshme matematikore dhe statistikore(shih tabelen 3).




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Table 3: Techniques used for evaluation of competitive position

Tabela 3: Teknikat e perdoruara per vleresimin e pozicionit konkurrues

Techniques used for evaluation of competitive positionTeknikat e perdorura per vleresimin e pozicionit konkurrues %

SWOT analysis

Analiza SWOT38

Industry attractiveness (Porter)Atraktiviteti industries (Porter) 6

Math and statistical methodsMetodat matematikore dhe statistikore 25

Value chain and cost analysisZinxhiri I vleres dhe analiza e kostos 6

Business portofolioPortofoli I biznesit 12

I don’t knowNuk e di 13

When they talked about mathematicaland statistical methods, the respondentsreferred to actuarial methods used forrisk management and for the calculationof reserves under the regulations in force,for both property insurance and lifeinsurance.The data also noted that 13% of respondents answered that they had noinformation about the tests used fordetermining the position of the company.This is a fact that should not be

overlooked, considering that most of thesample consisted of sales managers. Thisshows that in many cases, mid-levelmanagers are not informed or involved indeveloping the strategy.

The insurance market in Albania is a newmarket. All developments in the Albanianeconomy in recent years and theinsurance market in particular, requiredevelopment of strategies by companymanagers in order to adapt toenvironmental changes.The analysis of questionnaire data showsthat all have responded positively toquestions about having a strategy for thefuture and success of this strategy.A considerable portion of respondents(78%) argues that the strategy exists inthe form of a written document, while63% claim that they review the strategyevery two years.

Metodat matematikore dhe statistikore ireferehen metodave aktuaristike teperdorura per menaxhimin e riskut si dheper llogaritjen e rezervave sipasrregulloreve ne fuqi, si per sigurimin eprones ashtu dhe per sigurimet e jetes.

Nga te dhenat verehet gjithashtu se 13% jane pergjigjur se nuk kane informacionne lidhje me analizat qe perdoren perpercaktimin e pozicionit te kompanise. Kyeshte nje fakt qe nuk duhet anashkaluar

duke pasur parasysh se pjesa me emadhe e kampionit perbehej ngamenaxhere te shitjeve. Kjo tregon se ne

jo pak raste menexheret e nivelit temesem nuk jane te perfshire nemanaxhimin e strategjise.Tregu i sigurimeve ne Shqiperi eshte njetreg i ri. Te gjitha zhvillimet neekonomine shqiptare ne vitet e fundit dhene tregun e sigurimeve ne vecantikerkojne hartimin e strategjive nga ana emenaxhereve ne menyre qe ti pershtatenndryshimeve e mjedisit.Nga analiza e pyetesoreve rezulton se tegjithe i jane pergjigjur pozitvisht pyetjevene lidhje me pasjen e nje strategjie per teardhmen dhe suksesin e kesaj stragjie.Nje pjese e konsiderushme e teintervistuareve (78%) pohojne sestrategjia egziston ne formation e njedokumenti te shkruar, ndersa 63%pohojne se rishikojne strategjine ne cdody vjet.




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6. Types of business strategies andreasons for their success/failureData from questionnaires determine thatthe selected factors related to success arestrategy, courageous - ambitiousmanagement (37%) and rational attitude(27%). Here we put the self-confidencethat managers of these companies havein developing the proper strategy and thecontribution that their personalcharacteristics have on the success of strategies.Three leading companies in the marketSIGAL, SIGMA, INSIG have used thestrategy of market development,extended geographically. They haveexpanded their activities in Kosovoinitially and later in Macedonia. The same

strategy was also followed by Sigma in2007. Here we see that target marketsare those with Albanian ethnicity. SIGALfollowed the strategy of "concentricdiversification", taking exclusivity as thedistributor of "Peugeot", considering thenew activity as a rough road withinsurance.It is worth mentioning that no one haslisted any reason for failure. Only in onecase, failure is attributed to "uncontrolledexternal factors, again showing high

confidence in the success of thestrategies designed.

7. Responsibility for drafting thestrategy and strategic management

Responsibility for developing the strategyhas been attributed to CEO / Director by40% of respondents, higher managers by33% of respondents and middlemanagers by 27%.

8. Communication strategy andattitude for the futureBased on the specifics of each company,senior managers decide what the meansof strategy communication in other levelsof the organisation will be. It is notedthat despite the fact that 78% claim tohave a formal strategy, the deviceselected for communication is that of informal communication (50%) in staff meetings, through formal reports anddiscussions in each department (SeeFigure 3).

6. Tipet e strategjive të biznesit dhearsyet e suksesit/dështimit të tyreNga te dhenat e pyetesoreve konstatojmese faktoret e perzgjedhur qe lidhen mesuksesin e strategjise jane menaxhimkurajoz - ambicioz (37%) dhe qendrimiracional (27%). Ketu shfaqet besimi nevetvete qe kane menaxheret e ketyrekompanive ne hartimin e strategjise sidhe kontributin e tyre ne sukesin e ketyrestrategjive.

Tre kompanite lider ne treg SIGAL,SIGMA, INSIG kane perdorur strategjinee zhvillimit te tregut, duke u shtiregjeografikisht. Ato kane shtrire aktivitetine tyre fillimisht ne Kosove dhe me vonene Maqedoni. Te njejten strategji ndoqi

edhe Albsig ne 2007. Shihet qe tregjet esynuara jane ato me etni shtqiptare.SIGAL ndoqi edhe strategjine e

“diversifikimit koncentrik”, duke marreekskluzivitetin si distributor i “Peugeot”,duke e konsideruar aktivitetin e ri si njelinje te perafert me sigurimet.

Vlen per tu permendur se askush nuk kalistuar ndonje aresye te deshtimit. Vetemne nje rast, deshtimi i atribuohet

“faktoreve te jashtem te pakontro-

llueshem”, duke treguar dhe nje herevetebesim te larte ne suksesin estrategjive te hartuara.

7. Përgjegjësia për hartimin estrategjisë dhe manaxhiminstrategjikPergjegjesia per hartimin e strategjise iatribuohej CEO/Drejtorit nga 40% e teintervistuarve, menaxhereve te larte nga33% e te intervistuarve dhemenaxhereve te mesem nga 27%.

8. Komunikimi i strategjise dheqendrimi per te ardhmenBazuar ne specifikat e cdo kompanie,menaxheret e larte vendosin se cilat dote jene mjetet e komunikimit te strtegjisene nivelet e tjera te organizates. Vihet rese pavaresisht se 78% pohojne se kanenje strategji formale, mjeti qe eshteperzgjedhur per komunikimin estrategjise eshte ai jo formal (50%), nembledhjet e punonjesve apo gojarisishtneper departamente (shih grafikun 3).




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50%

28%

22%

0% 10% 20% 30% 40% 50% 60%

By Mouth Meetings

Formal Reports

Others

Takime jo-formale

Raporte te shkruara

Te tjeret

Figure 3: The means of strategy communication

Fig. 3: Mjetet e komunikimit te strategjise

The views of respondents regarding themethod of gaining the skills necessary forthe development of these strategies are:35% from proper education, 30% fromtraining and 20% from experience.

Concerning the implementation of thestrategy, 40% have confirmed that adraft implementation plan of action isdeveloped. A significant portion of therespondents has selected more than oneoption and 30% of them have selected

additional measures as the secondoption.When asked about the level of competition in the market, although allhave chosen the option "very highcompetition", the results are splitbetween local competition (38%) andnational competitiveness (62%).Companies that have chosen the optionof local competition are those that arespread in the region of Kosovo andMacedonia (INSIG, SIGMA, SIGAL).

From the research data is seen that themajority (63%), claims that the changeswill be rapid, with a growing markettrend. In relation to sustainability in thedevelopment of the market, 50% of therespondents perceive as sustainabledevelopment and only 13% think it willbe unpredictable elements (Figure 4).

These results indicate that the market isperceived as stable and this is a positivefactor. After the expected changes in theInsurance law, it is believed that thisstability will increase.

Pikepamjet e te anketuarave ne lidhje memenyren e fitimit te aftesive tenevojshme per hartimin e ketyrestrategjive rezultojne: 35% nga arsimit iduhur, 30% nga trajnimet dhe 20%praktikes.Ndersa ne lidhje me menyren se siimplementohet strategjia, 40 perqindpohojne se hartohet nje plan msashzbatimi. Nje pjese e konsiderueshme e teanketuarve kane zgjedhur me shume senje opsion dhe 30% e tyre kane

perzgjedhur si opsion te dyte masatshtese.Te pyetur per nivelin e konkurrences netreg, pavaresisht se te gjithe kanezgjedhur opsionin “konkurrenca shume elarte” persa, rezultatet ndahen nekonkurrence lokale (38%) dhekonkurrence kombetare (62%).Kompanite qe kane zgjedhur opsionin ekonkurrences lokale jane ato qe kaneshtrirje ne rajon perkatesisisht ne Kosovee Maqedoni (INSIG, SIGMA, SIGAL).

Nga hulumtimi i te dhenave rezulton sepjesa derrmuese (63%), pohon sendryshimet do te jene te shpejta metendence rritje te tregut, ndersa ne lidhjeme qendrueshmerine ne zhvillimet etregut, 50% e perceptojne si treg mezhvillim te qendrueshem dhe vetem 13%mendojne se do te kete elemente tepaparashikueshem (shih grafikun 4).Keto rezultate tregojne se treguperceptohet si i qendrueshem dhe kyeshte nje faktor pozitiv, pas ndryshimevete pritshme ne ligjin per sigurimetmendohet se ky stabilitet te jete ne rritje.




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38%

50%

12%

0% 10% 20% 30% 40% 50% 60%

Predictable

Stable

Unpredictable

Te parashikueshme

Unpredictable

Te pa-parashikueshme

Figure 4: The future of the sector

Fig 4: E ardhmja e sektorit

These results indicate that the market isperceived as stable and this is a positivefactor. After the expected changes in theInsurance law, it is believed that thisstability will increase.The year 2009 was named as the year of insurance, because there was ( Gjoni,2008 ):• An increased level of minimum capital

under the EU rules, in 3 million Euro;• An increased growth rate with 30%,

much higher than the growth rate in

recent years (5%);• An increased asset market with 17%,which implies that the paying abilityof the market grew by 35%.

If we refer to the FSA data for the periodJanuary - May 2009, the figures showthat there is an increase of 13% ininsurance premiums written, comparedwith the same period of 2008, whichspeaks for ongoing growth in theinsurance sector in 2009.With regard to 'the attitude of thecompany toward the future', responseswere divided into two alternatives: 75%use prospector strategy and 25 percentuse offensive strategy.

Keto rezultate tregojne se treguperceptohet si i qendrueshem dhe kyeshte nje faktor pozitiv, pas ndryshimevete pritshme ne ligjin per sigurimetmendohet se ky stabilitet te jete ne rritje.Viti 2009 eshte quajtur si viti isigurimeve, per shkak se ( Gjoni, 2008 ):

• Rritet niveli i kapitalit minimal sipasrregulave te EU, ne 3 milione Euro

• Ritmi i rritjes prej 30%, shume me ilarte se ritmi i rritjes ne vitet e fundit

prej (5%) ;• Ka rritje prej 17% te aseteve tetregut, gje e ben qe aftesia paguese etregut rritet me 35%.

Nese do t’i referohemi te dhenave teAMF-se per periudhen Janar – Maj 2008,shifrat tregojne se ka nje rritje prej 13%,krahasuar me te njejten periudhe te2007, ne primet e shkruara te sigurimit,gje qe flet per vijimin e rritjes ne sektorine sigurimeve dhe ne vitin 2008.Persa i perket ‘qendrimit te kompanisendaj te ardhmes’, pergjigjet u ndane nedy alternativa: 75% perdornin strategjinekerkuese dhe 25 perind ate sulmuese.

Table 4: The strategy of the company for the future

Tabela 4: Qendrimi i kompanise per te ardhmen

Future strategies Qendrimi I kompanise per te ardhmen %

Reactive / Reagues 0%

Researcher / Kerkues 75%

Analyser / Analizues 0%

Other (Attacker) / Tjeter (Sulmues) 25%




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IV. Conclusions

1. Innovation management in theInsurance Companies has not beenused to satisfactory levels. The firstthing we noticed was a lack of clearstatement of the vision and mission of these companies, in the respectivewebsites, as well as in data obtainedby the questionnaires. The missionand vision were confused withpromotional or short messages.

2. Data related to environmental studiesshow that the spirit of strategicmanagement is introduced ininsurance companies, despite theproblems dictated by a lengthytransition and the yet unstable

structure of ownership.

3. It is a positive fact that strategies areproduced mainly by high levelmanagers, and at the same timeefforts are made to engage otherlevels of organisation. It is noticedthat most companies have a writtenstrategy, a factor that indicates thatat least from a formal view, strategicmanagement has begun to apply tothese companies. The main method

for transmission of the strategy wasinformal, in general staff meetings ororally in each department, probablydue to preservation of confidentiality.

4. Strategies are reviewed every twoyears. It is a positive factor for anunstable market. So the goalconsidered is not simply writing a planfor the future, but thinkingstrategically.

5. If you do not know where you aregoing, all roads lead to Rome" says anold Roman proverb. However, if youdo not know where you are, you cannot judge precisely where you will go.This reasoning supports the fact thatmanagers use scientific methods fordetermining the position of thecompany in relation to competitors,such as SWOT, an indicator that tellsabout the efforts or attempts of managers to think strategically.

IV. Konkluzione

1. Menaxhimi Strategjik ne kompanite esigurimit perdoret ne nivele jo tekenaqshme. Kjo gje verehet ne njeformulim jo te qarte te vizionit dhemisionit te ketyre kompanive, si newebsitet perkatese ashtu dhe nedhenat e nxjerra nga pyetesoret.Misioni ne vetvete ngaterrohej mevizionin ose me mesazhe te shkurtrapromocionale.

2. Te dhenat ne lidhje studimet emjedisit, tregojne se eshte futurfryma e menaxhimit strategjik nekompanite e sigurimit, pavaresishtproblemeve qe diktohen nga njetranzicion i sterzgjatur dhe nga

struktura e pronesise snde eparregulluar.

3. Eshte pozitiv fakti qe strategjitehartohen kryesisht nga menaxheret enivelit te larte, dhe njekohesishtbehen perpjekje per angzhimin eniveleve te tjera te orgnizates. U vure se shumica e kompanive kane njestrategji te shkruar, faktor qe tregonse te pakten nga ana formalemenaxhimi strategjik ka filluar tezbatohet ne keto kompani. Mjeti me i

perzgjedhur per transmetimin estrate-gjise ishte rruga joformale, nembledhjet e stafit ose gojarisht ne cdodepartament, kjo ndoshta per shkakte ruajtjes se konfidencilitetit.

4. Rishikimi i strategjive cdo dy vjeteshte nje faktor pozitiv per nje treg tepaqendrueshem. Pra qellimi nukkonsi-derohet thjesht hartimi i njeplani per te ardhmen, por temenduarit ne menyre strategjike.

5. “Nese nuk e di se ku po shkon, tegjitha rruget te cojne ne Rome” thotenje proverb i vjeter romak. Por nesenuk e di ku je, nuk mund te gjykoshsakte se ku do te shkosh. Ky aryetimmbeshtet faktin qe menaxheretperdorin metoda shkencore perpercaktimin e pozicionit te vete neraport me konkurrentet, sic eshteSWOT, tregues qe flet per perpjekjennga ana e menaxhereve per njemenaxhim strategjik.




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6. Creating temporary alliances withother companies and bargainingcapacity of these managers haveresulted in increased market shareand margin of profit. Companies suchas Interalbanian and Eurosig aremostly companies that have operatedwith this strategy.

6. Krijimi i aleancave te perkohshme mekompanite e tjera dhe aftesianegociuse e ketyre menaxhereve kanecuar ne rritjen e pjeses se tregut dhemarzhit te fitimit. Kompani te tilla siInterabanian dhe Eurosig kane qenekompanite qe me se shumti kaneoperuar me keto strategji.

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