MOLDOVA: in 2019, almost 94% of total GWP generated by the non-life sector

7 April 2020 — Marina MAGNAVAL
According to the data of the National Commission on the Financial Markets of the Republic of Moldova (CNPF), in 2019 local insurance companies collected 7% more GWP y-o-y, informed the Chairman of the Administrative Board of CNPF, Valeriu CHITAN.

Total GWP reached MDL 1.62 billion (~EUR 84.35 million), with almost 94% of this volume coming from non-life insurance classes (MDL 1.52 billion, +7.5% y-o-y), the rest of 6% being brought by life insurance classes (its market share decreasing from 6.6% to 6.3%, amounting MDL 101.7 million, +1.7%). The share of compulsory types in the market portfolio was 42% (MDL 683.1 million), while voluntary insurance accounted for a little less than 58%.

The largest shares in the market GWP were taken by segments such as MTPL (MDL 381.1 million, +4.6%), Green Card (MDL 299.7 million, -9.8%) and Motor Hull (MDL 345.6 million, +11.8%), which together occupied 64% of the non-life portfolio.

In 2019, income and expenses of the insurers increased by 11.3% (to MDL 2.55 billion) and 14.8% (to MDL 2.58 billion) respectively y-o-y. At the same time, in 2019 insurers had pre-tax losses in amount of MDL 26.4 million (vs. profit for 2018 in the amount of MDL 45.8 million), as the data of the National Bureau of Statistics show.

At the end of 2019 year, 13 licensed companies were active on the local insurance market, the license of one company being suspended. The market leaders in terms of GWP were Grawe Carat Asigurari (MDL 225.2 million), Moldasig (MDL 218.8 million), Donaris VIG, Asterra Grup and General Asigurari. TOP-5 insurers accounted for 64% of the market premiums. The smallest amount of premiums was collected by Auto-Sigurata (MDL 1.5 million), InfoMarket wrote.

According to Valeriu CHITAN, paid claims in 2019 increased by 20% (to MDL 654 million) y-o-y. At the same time, about 98% of all paid claims were made by non-life insurers (MDL 642 million), while life insurance companies accounted for about 1.8%. The compulsory segment accounted for 42% of paid claims, and the voluntary - for about 57%. The data of the National Bureau of Statistics show that health insurance paid claims amounted to 5% of the total (MDL 33 million, +7.8%), while most of the paid claims fell on the motor third party liability insurance (43.3% of the total).

CHITAN noted that in 2019 increasing prudential requirements within the framework of harmonization of the national non-banking regulatory and supervisory system with EU legislation was the main challenge for the market. The most significant changes related to the structure and size of assets, methods of calculation of technical reserves, requirements for covering insolvency margins. According to him, "maintaining an appropriate level of capital in a qualitative and quantitative sense (through its coverage with liquid assets) should be the primary task for insurance companies and will ensure their better operation and help keep trust of customers of insurance services", he said.

CNPF, with support of the World Bank, developed a draft law on insurance/reinsurance activities (partly based on Solvency II) and a draft law on MTPL, which will allow the insurance market to meet European standards in the future.

* 1 EUR = 19.2605 MDL (December 31st, 2019)

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