Rep. of Moldova: MTPL tariffs could be liberalized gradually while insurers' capital could reach MDL 1.8 billion lei according to NCFM strategy

Until 2022, the volume of insurance reserves and the insurers' capital must reach the level of MDL 1.8 billion each, the development strategy developed for the following five years by the National Commission of the Financial Market in Moldova (NCFM) for the non-banking financial market envisions.

At the same time, life insurance could reach a market share of 8.6% of the total market or MDL 116.5 million compared to MDL 89.2 million in 2016.

Thus, NCFM aims at aligning the legislative and normative framework in accordance with the community legislation and international principles. Among the most important objectives in the strategy are:
  • alignment of risk supervision and management to standards of regime Solvency II by 2019, as well as preparation of the profile market for the application of this solvency regime;
  • adoption of the European Insurance Distribution Directive (IDD) by 2019, involving the shift from the concept of intermediation to the concept of insurance distribution. Among the most important changes to be made are the requirements for professional training for broker and insurer employees, taking into account the products sold, the type of distributor. At the same time, IDD anticipates additional requirements in terms of consumer protection;
  • developing and implementing by 2018-2019 the financial recovery framework for insurers;
  • the gradual liberalization of the compulsory motor insurance MTPL until 2019. The NCFM will establish the structure and the method of calculating the basic insurance premiums, including the types of rectification coefficients and their calculation method, the minimum quota and the maximum quota insurer's expenses and profit margin, as well as other actuarial aspects;
  • promotion of the draft of Law on National Insurance Guarantee Fund aimed at regulation of the legal status of the Fund, as well as other aspects related to its administration, financing resources, the procedure and conditions for the payment of insurance debt.
  • stimulating the launch of new products, part of voluntary insurance: life and health insurance, financial risk insurance, housing and real estate insurance, agriculture insurance, etc.
Evaluation of the achievement of the strategy will be made by NCFM at the end of each year for the duration of the strategy plan, based on the pre-established monitoring indicators. The financing of the actions, as well as the technical assistance provided in the document will be made from the budget of the supervision commission.

The most important measures implemented so far by NCFM for the insurance market:

  • increase of the share of capital for the insurers selling the Green Card up to MDL 22.5 million and to the brokers - MDL 100.000;
  • implementation of the capitalization, solvency and liquidity requirements under the Solvency I regime. As a result of these measures, the number of insurance companies during seven years was decreased from 24 (2010) to 16 (2016). In 2016, the top 5 insurers accounted for about 67% of total market premiums, compared to 65% in 2015;
  • tightening regulatory licensing requirements for insurance company and insurance intermediation. Thus, the number of brokerage companies reduced to 70 in 2016, and the volume of the intermediate premiums accounted for about 30% of the total gross written premiums;
  • regulating intervention measures by setting up special administration of an insurer and financial recovery of another insurer;
  • establishing the requirements for the prudential assessment of the concentration of risks on the domestic market and the volume of premiums ceded in reinsurance outside the country.

Related articles

Main conclusions: The Insurance Conference - Republic of Moldova

One of the most important annual events dedicated to the regional insurance market, The Insurance Conference - Republic of Moldova, took place on 10 October in Chisinau, gathering over 120 professionals from Moldova, Romania, Russia, Ukraine, Holland, Germany, The Czech Republic, Poland, Croatia and Latvia.


Moldova: GENERAL Asigurari is the newest player to enter the market

GENERAL Asigurari is the most recent player to enter the re/insurance market in Moldova. The Board of Directors of the National Commission of Financial Market has issued the prior approval of registration in this regard, according to official anouncement made by local supervisory authority.


STATISTICS: Rep. of Moldova, 1H2016: GWP up by more than 9.5%, while claims increased by over 40%

The Moldavian insurance market has recorded in 1H2016, total GWP of MDL 628 million (EUR 28,2 million), increasing by 9,5% as compared with 1H2015, according to the official data published by the National Commission of the Financial Market in Moldova (CNPF). In the European currency, company's GWP have seen a decrease of 0,49%, as a consequence of the national currency depreciation against the European one.



New Head of Investor Relations at AEGON

Jan Willem WEIDEMA has been appointed as the new Head of Investor Relations at AEGON. He succeeds Willem van den BERG who has led the Investor Relations team over the past 7 years.


Robin SPENCER to leave NN Group

NN Group announced that Robin SPENCER will step down as Chief Executive Officer of International Insurance and member of the Management Board of NN Group, effective 1 June 2018.



"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.



"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.



Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.



The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!


Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".


Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.


See all