Main conclusions: The Insurance Conference - Republic of Moldova

12 October 2017 — Alexandru CIUNCAN
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.

Valeriu CHITAN, President, CNPF - The National Commission for Financial Markets in Moldova
  • The CEE markets are currently undergoing a transformation process, both as far as regulation and operations are concerned, facing new requirements and challenges. We see this current stage as a transition towards euro-conformity and good practices
  • Moldova continues to be dominated by motor insurance - MTPL and Motor Hull and Green Card. In 2016, out of the Moldovan leu 1.35 billion, MTPL represented under 50%. The low income and the lack of financial education of the Moldavian citizens can be easily seen
  • I want to confirm to the representatives of CoB from Bruxellles our entire and complete commitment in fulfilling the clauses we have taken upon ourselves
  • The national insurance market has perspectives for development. Given this context, CNPF will continue to implement projects together with the European Union and the World Bank
Svetlana LUPASCU, Director, General Direction for Insurance Supervision, CNPF - The National Commission for Financial Markets in Moldova
  • We have 16 companies on the insurance market in Moldova which have a statutory capital of lei 520 million. The estimated profit for 2017 is lei 110 million
  • For 2018, the World Bank estimates an economic increase of 3.8%
  • 2018 is a year of challenges for us: we aim to create two new laws for the MTPL segment, to raise the awareness regarding Solvency II and to help the development of voluntary insurance products
Cornel COCA CONSTANTINESCU, Vice-President, ASF - The Financial Supervisory Authority in Romania
  • The financial non-banking market in Romania has recently implemented an integrated financial supervision system, since the markets are interconnected. Financial products belong to different segments but need to be supervised in a consolidated manner
  • The insurance industry in Romania is an emerging one, but this is exactly what gives it its growth potential. For example, life insurance represents only 18% of the total GWP , compared to 60% at the European level
  • The Romanian insurance market has recently undergone a reset moment. We now report an 11% increase on the non-life insurance segment and a 6% increase on the life insurance segment
Alla MIGASHKO, Senior Reinsurance Broker, AON Central and Eastern Europe, Czech Republic
  • After a period of stagnation, global reinsurance demand has recently shown a modest increase. The main drivers are improved economics, the prevalence of risk-based capital regimes and new or emerging areas of risk transfer, such as mortgage credit and cyber business
  • Alternative capital deployment is also developing as a trend the international scale
Gordana LETICA, Member of the Board, Financial Services Supervisory Agency, Croatia
  • Croatia entered the EU in 2013 and we jumped onto a running train. 
  • So the successful adaptation of the insurance industry to this situation is a real accomplishment for us
  • In July 2014 the Insurance Act introduced in Croatia a part of the Solvency II obligations
  • Since 2013, a total of 7 insurance undertakings merged and several others have been announced to do so
Klime POPOSKI, President, Insurance Supervision Agency, Macedonia
  • Climate change is making an impact on economic losses. We are witnessing an increase of the global warming with 2016 being the warmest year ever recorded. Atmospheric carbon dioxide level is also on the rise. Population growth and high concentration of assets in exposed areas are additional risk factors.
  • Instead of lowering, the protection  gap between insured and uninsured losses grew between 1980 and 2016.
  • We need a consistent disaster risk management system
  • Private-Public Partnership Systems are crucial for developing the cat insurance segment
Bostjan VOVK, Deputy President, Insurance Supervision Agency, Slovenia
  • My expectation in terms of risk-based supervision would be to turn your attention from the past to the future 
  • The additional data that we have, particularly if it is forward-looking brings a lot of advantages for regulators and for the markets in general
  • Regulating or deregulating MTPL is an important question for each and every market
  • Both extremes in terms of having too low or too high premiums pose challenges to insurance markets after de-regulation
  • The role of supervisors is extremely important in terms of monitoring a certain MTPL market after de-regulation
Juris STENGREVICS, Member of the Board, Motor Insurance Bureau, Latvia
  • 391 million EUR GWP produced by 16 insurance companies
  • MTPL insurance was introduced in 1997 and since joining the EU in 2004 we decided to have the insurance premiums tariffs assessed by insurers as opposed to the previous regulated premiums that were previously in place
Alexandru D. Ciuncan, Member of the IRSG & OPSG, EIOPA; Managing Partner, XPRIMM
  • For the first time, consumer protection is embedded in the product itself. It is the first time when insurance manufacturers, insurance undertakings and intermediaries have to design, use and review processes for the approval of new products. All these have to happen before the marketing or distribution. The product approval process must specify the identified target market and also if the distribution strategy is consistent with this market. This information should be made available to all distributors.
  • What we need is balance. What we also need is trust between supervisors, industry and consumers. The intention is definitely good. But one should not forget that the devil is always in the details...