MOLDOVA: first online conference "Insurance - between pandemic challenges and market strengthening"

2 July 2020 — Marina MAGNAVAL
On June 25, 2020, the first online conference "Insurance - between pandemic challenges and market strengthening", dedicated to the Moldovan insurance market, took place in Chisinau. The conference was organized by XPRIMM with the support of the National commission on the financial markets of the Republic of Moldova (CNPF) and the National Bureau of Motor insurers.

The conference was attended by over 100 representatives of the insurance markets of Moldova and Romania. Among issues discussed by the participants, it's worth noting new regulatory standards for insurance, new legislation, challenges for the insurance market caused by the pandemic, etc.

As the Chairman of the Administrative Board of CNPF, Valeriu CHITAN emphasized, over two years the regulator and market participants have been implementing a number of measures to tighten the regulatory framework in order to introduce prudential standards related to risk supervision. Requirements for liquidity, technical reserves and solvency have been improved and established. During the last 12 months, measures on improvement and financial strengthening of some market participants on the verge of bankruptcy and with a shortage of assets have been also taken. In addition, the Chairman of CNPF noted that portfolio of insurance contracts should be "released from the pressure of compulsory insurance in favor of expanding voluntary types".

Speaking about the challenges caused by the pandemic, Valeriu CHITAN noted that all parties should be involved in the process - the regulator, market participants, shareholders and corporate management:

"We are in a situation (force majeure), when entrepreneurs, and not only them, must reconsider their methods, thinking about business from the point of intensity, while austerity should become the rule in everything. And in our case, this means, first of all, reduction and rationalization of expenses, especially procurement costs and mainly for intermediary services."

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