Mariusz WICHTOWSKI: The first aspect refers to the internal organization of the National Bureau of Motor Insurers in Moldova which is totally unstable. Secondly, it is the lack of access by the local management to the funds of the bureau. Thirdly, insurance companies that issued Green Card policies did not create an external financial guarantee (editor note: in the amount of EUR 4.25 million at a European bank, according to the requirements by the Council of Bureaux).
Insurers that issue Green Card policies were unable to fulfill these conditions. As Moldova is monitored by the Council of Bureaux, we issued such a recommendation.
XPRIMM: What measures should be taken by the National Bureau of Motor Insurers of Moldova as soon as possible to avoid the suspension from the Green Card system?
M.W.: The members of the Bureau must decide, finally, how the bureau will be organized, what the management will be and how to adjust the internal legislation to meet the international legal requirements. Moreover, it has to completely change the current situation when a small group of the people running this business are eliminating all others from the decision making process. Also, to regain access to the funds of the bureau and to fulfill the financial guaranties demanded by the international legislation. All of these measures must be taken together. All of them must be taken now.
XPRIMM: If they will deposit the guarantee funds requested by the CoB, will it be enough for them not to be suspended?
M.W.: As I told, all the above measures should be taken. If the management of the Moldavian Bureau has no access to the funds of the bureau, how could they fulfill this requirement? That's the main question and, as we know, the situation in market is very unstable. The supervisory authority tried to help and normalize the situation. Secondly, the government was also interested in solving the problem. However, there is the issue of some representatives of some insurance companies in Moldova who do not want to share "the power" with the rest of the market. But this is an internal problem of the market that must be solved by itself. We are pointing out what is not working properly and suggesting a solution. We are not and we do not want to be involved in the internal organization of the market.
XPRIMM: Should the authority from Chisinau intervene or this is the problem of the National Bureau of Motor Insurers of Moldova?
M.W.: The authority tried to intervene but was unsuccessful. There is a big contradiction: there is a mix of political and financial interests from a group of people.
XPRIMM: So, which will be the consequences for the Moldavian drivers if the country will be suspended from the Green Card system?
M.W.: The first consequence is that the market will lose premiums from issuing Green Cards. Secondly, the Moldavian people will not have the benefit of getting Green Cards from the local insurance companies and be forced to pay for the frontier insurance when entering other countries and that is usually more expensive. Also, the National Bureau of Motor Insurers of Moldova will be obliged to pay the claims that already happened before the suspension, despite the fact that there will be no new sources of income. So, the situation will be getting worse and worse.
XPRIMM: The Moldavian bureau will have to pay for all the claims that happened the past?
M.W.: Yes. This will be really difficult because the bureau is financed by the insurers by redirecting a percentage of the Green Card premiums. As I mentioned before, there will no longer be any premiums.
XPRIMM: For how long will the National Bureau of Motor Insurers of Moldova be suspended?
M.W.: The suspension is unlimited, but if within 10 years the market will be still remain suspended, the membership will be terminated. But, of course, nobody wants to have such a long suspension because it makes no sense. We really believe that the market will analyze the current situation and will take into account the recommendations.
However, I want to point out one important thing: the problems mentioned about the insurance market of Moldova appeared many years ago and it was constantly prolonged. We have been receiving promises every year without any real results.
XPRIMM: The decision to suspend Moldova will have consequences for the drivers in the other member countries of the Green Card system when they will enter Moldova?
M.W.: Yes, it will be a problem for those who will come to Moldova, because insurance policies of foreign drivers will be not recognized in Moldova and they must also buy another frontier policy valid only for Moldova.
XPRIMM: In the case of a suspension, can insurance companies from other countries sell Green Card policies in Moldova?
M.W.: It will not be possible according to the international rules. Such a situation is acceptable only when within a certain market no bureau exist. And Moldova will still remain the member of the Council of Bureaux, so there is no possibility for insurance companies from the other countries to sell policies in Moldova (e.g.: no Romanian, no Bulgarian).
XPRIMM: How many time do they have to fulfill all these obligations?
M.W.: The suspension can be withdrawn in a relative short time after all of the obligations are fulfilled. It is difficult to say because this problem is so complex that they have to solve it at this very moment. But our organization is flexible and when we will receive proof that everything goes well, than the management committee can propose to withdraw the suspension.
The decision will be taken by the General Assembly which will be held in the last week of May and if it is so decided the sanction will automatically come into force starting July 1st.
XPRIMM: Taking into consideration that we have less than two months until the end of May, is there too little time for Moldova to meet the requirements?
M.W.: It is difficult to say "too little time" considering the fact that Moldova had available several years to do this. We have been constantly asking to improve the situation on market and to have financial stability. This did not happen and we doubt that what was not done over the recent years will be done now, in a few weeks.