In the first three months of 2013, the 17 companies operating on the Moldavian insurance market reported a gross written premiums volume of MDL 232 million (EUR 14.4 million), a value similar to the one reported in January-March 2012, according to preliminary data published by CNPF - The National Commission for Financial Markets.
For the second consecutive year, the Moldovan insurance market reported a business volume exceeding one billion MDL. Thus, GWP amounted to MDL 1.09 billion (EUR 69.9 million), an increase of over 8% compared with December 2011, as shows the preliminary data gathered by the market's supervisory authority. In European currency, the insurance market grew by over 13%, statistically helped by the Moldovan currency appreciation related to the euro.
From the 1st February, the compulsory MTPL and Green Card insurance policies will be issued only in electronic form, according to the decision taken by the Supervisory Authorities of Moldova. Discussions for the implementation of such a system began in 2009 due to several delays provoked by technical and institutional aspects. According to Vladimir STIRBU, General Director of the Insurance Supervisory Authority of CNPF, the processing of an insurance contract in normal conditions takes about one minute. Also, those who buy the MTPL insurance policy will pay according to their risk profile which will be determined by the number of accidents they produced over the previous year.
The first nine months of this year marked for Moldavian insurance
market, a total volume of gross written premiums of MDL 785.5 MDL (EUR
50.9 million), up 5.3% compared with January-September 2011 - according
to preliminary data centralized by the National Commission of Financial
The combined gross profit of Moldovan insurance companies rose to 25.36
million lei (USD 2.03 million/ EUR 1.6 million euro) in the first half
of 2012 from 20.63 million lei a year earlier, the country's securities
commission, CNPF, said on Tuesday.
Russian insurance group ROSGOSSTRAKH left the insurance market of the Republic of Moldova by selling its majority share of 80% to local insurance company MOLDASIG. The deal was realized by selling the shares through stock exchange in five transactions to foreign interest companies. Total value was of MDL 194.73 million, an equivalent of EUR 12.8 million. Selling price of a single MOLDASIG share with a nominal value of MDL 100 was at MDL 410.92 according to information published by the stock exchange market of Moldova in 25th of July 2012.
The insurance market of the Republic of Moldova accounted for the first
six months of 2012 to a total of MDL 501 million in underwritings, 7.5%
more than the same period of 2011, as the figures recently published by
the National Commission of Financial Markets (NCFM) show. In European
currency, the business volume of the Moldavian insurers reached EUR 32.5
million, an increase by EUR 4.5 million compared to 1H2011. Also, paid
claims by insurance companies totalized MDL 187 million (EUR 12.2
million), 8.3% more than the year before.
MDL 234 million (EUR 15 million) wrote in premiums the Moldavian
insurers in 1Q2012, 9.4% more than a year earlier, according to the
financial data centralized by the National Commission of Financial
Market (NCFM). In the same time, claims reached MDL 107.5 million (EUR
6.9 million), a 20% increase in comparison to 1Q2011.
Last week, the supervision authority of the Moldavian insurance market authorized the decrease from 80% to 0% of the share owned by the Russian company ROSGOSSTRAKH in the capital of MOLDASIG, the leader of the Moldavian insurance market.
The Parliament has decided to build up the amount of insurance benefits on cars insured in case of their damaging.
MDL 222 million (EUR 14.3 million) wrote in premiums the Moldavian insurers in 1Q2012, 4.6% more than a year earlier, according to the preliminary financial data centralized by the National Commission of Financial Market (NCFM). MTPL insurance generated MDL 45.9 million in premiums (3.3% less than last year), or 20.7% of the market. At the same time, Green Card totalized MDL 47.3 million (12% less), equivalent of 21.3% of the total market.
MDL 297.6 million (EUR 18.2 million) was the volume of gross written premiums of insurance brokers in Moldova last year, show the financial indicators published by the Supervisory Authority. Compared to 2010, the mediation market increased over 40%.
MDL one billion (EUR 61.6 million) wrote in premiums the Moldavian insurers in 2011, 10% more than a year earlier, according to the final financial data centralized by the National Commission of Financial Market (NCFM). Claims reached MDL 348.4 million (EUR 21.3 million), an 8% increase in comparison to previous year. "Last year, the share of insurance market in GDP was 1.3%. If this indicator will reach 3%, as in developed countries, it is clear that doubling the market (MDL 2 billion) is a possibility for the next years", said Vladimir STIRBU, Director of Insurance Department of NCFM.
One of the major challenges that the Chisinau supervision authority must
face in 2012 is the completion of the informatic system for MTPL
policies: "As far as the implementation process goes, we wish we could
have used the electronic issuing system from a while back, but the
context didn't allow it", declared Vladimir STIRBU.
The second edition of the Seminary dedicated to the motor insurance sector took place at Chisinau, on the 2nd of April, 2012. The event was organized by Media XPRIMM, together with the Moldavian supervision authority - CNPF - The National Commission of the Financial Market. "The organization of this seminary is welcomed and extremely important in the context of the quantitative and qualitative transformations that take place on the Moldavian insurance market: exceeding the threshold of MDL 1 billion for the premiums volume, continuously consolidating the companies, implementing the electronic issuing system and, in general, adjusting the current legislation to the European aquis by implementing the best European standards and practices", observed Artur GHERMAN, Vicepresident of CNPF.
According to Pavel CATER, the President of BNAA - The National Bureau of Motor Insurers in the Republic of Moldova, in the last 5 years, the insurers paid only 60% of the real value of MTPL claims, because of the ageing factor. Thus, after the 6th of April 2012, "the average claim value will increase. We will have more expensive claims to pay. What is the solution? The only possible source is the increase of premiums. The current rates are calculated based on statistics from 2002-2008. We believe that claims will increase considerably, by 40%. Still, taking into account the increase of the services' quality, the rates should also increase", explained Pavel CATER.
According to The Supervision Authority in Chisinau, the eight company members of UAM - The Union of Moldavian Insurers, have proposed the postponement or the extension of the waiver regarding the application of stipulations concerning the elimination of the wear coefficient by three years: "This motion made by UAM members is still in discussion at the highest level - The Parliamentary Commission. If it is not approved, CNPF believes that the insurers can survive this reform without losses", explained Vladimir STIRBU, Director, The Supervision Division, CNPF.
With participation of the Ministry of Agriculture and Food Industry of Moldova (MoA), the National Beet Growers Association and the insurance company Moldasig have agreed to stop a public controversy on compensations for beet losses due to 2011 drought.
MDL one billion (EUR 61.4 million) wrote in premiums the Moldavian insurers in 2011, 9.7% more than a year earlier, according to the preliminary financial data centralized by the National Commission of Financial Market (NCFM). Claims reached MDL 334 million (EUR 20.45 million), a 3.5% increase in comparison to 2010.
Austrian insurer VIENNA Insurance could make new acquisitions in Hungary and Moldova this year if interesting targets were available, according to company's officials cited by REUTERS. Also, VIG's representatives told reporters that they are eyeing potential growth opportunities in Poland and Ukraine as well.