The new rules for calculating base rates and applying adjustment factors, developed at the initiative of the National Financial Market Commission (CNPF) of Republic of Moldova, will directly affect the final price of insurance policies, ensuring greater transparency of the market, blog.omnis.md writes.
Until now, policy prices were strictly regulated, with all insurance companies applying the same rates set by the authorities. From January 2025, each company will be able to set its own prices, considering factors such as the level of claims, administrative costs, internal policies and risk profiles of clients.
This change is aimed at increasing competition between insurers, which can lead to better service and lower tariffs for customers.
The new rules reduce base tariffs on Green Card policies. The new base rates are significantly lower than the previous ones, which could contribute to savings for policyholders. However, final prices will depend on coefficients applied by each insurance company, which has yet to be determined, according to the source.
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