Challenges Faced by the Albanian Automotive and Auto-Insurance Industries Amidst Blockchain and Artificial Intelligence Disruption

Ezmolda Barolli – University of Tirana, Faculty of Economics, Rruga Arben Broci 1, Tiranë 1001, Albania

Muhamet Zeneli – University of Tirana, Faculty of Economics, Rruga Arben Broci 1, Tiranë 1001, Albania

Abstract: This paper aims to explore the automotive and auto insurance industries in Albania, pointing out the presence of such challenges as sys­tem interoperability, vehicle repair traceability, and risk analysis in insur­ance claim processing. Identifying the fragmented characteristics of these sectors is made possible through research techniques, including interviews with stakeholders and analysis of available open data. It also examines how various systems used by stakeholders are disconnected, vehicles’ ser­vice history associated with VINs being rare, and risks from odometer fraud and rolling wrecks (re-entering damaged cars into the market). This paper further explores the auto insurance landscape by highlighting the non-ex­istence of a bonus-malus system despite legal provisions, lack of data op­erability among insurers, and traditional labor-intensive claims settlement methods that intensify fraud risks. The paper discusses how blockchain and AI technologies can address these issues, drawing insights from previous re­search on their application in this sector.

8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, CONFERENCE PROCEEDINGS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-83-7, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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