Moldova avoids suspension from Green Card system. The CoB General Assembly decided to postpone the deadline until April 1st, 2016

2014 and the first half of the current year were one of the most difficult periods for the domestic insurance market due to the internal disputes in the National Bureau of Motor Insurers in Moldova between the members with rights to issue Green Card policies, namely, regarding the principle of internal organization and the lack of access by the local management to the funds of the bureau.

In this context, initially, CoB General Assembly decided to suspend Moldova from the Green Card system from July 1st. At a later date this decision was postponed to October 1st , 2015, but due to the fact that insurance companies in Moldova together with local authorities have taken a number of measures to redress the created situation, including the payment of external guarantees of EUR 4.25 million to the Council of Bureaux in Brussels and the repayment of existing debt under the issued Green Card policies, the CoB General Assembly decided to postpone the deadline until April 1st, 2016.

At the same time, CoB proposed a business plan which will be respected and realized by insurers-members of the National Bureau of Motor Insurers of Moldova (BNAA) in order to avoid further suspension of Moldova from Green Card system.

Veronica MALCOCI, General Director, GRAWE Carat Insurance (note: one of the leader companies on the local market with 10.09% share of the market in terms of GWP) commented the unusual situation on the domestic market in light of recent events: "At the general meeting of the Board of Directors from May, 2015 a decision of suspension of the Republic of Moldova from the Green Card system was taken, starting with October, 1st 2015. And was undertaken a concrete action plan to delay this date to a further date. We have elaborated an action plan with exact terms, amendments of legislation. It is necessary to increase the financial stability of the insurance market and to avoid the past situations reflected in the insurance market in general, as well as in the market of Green Card insurance. There are a lot of amendments that are necessary to undertake as soon as possible".

In 2002, Moldova has gone through a measure of suspension from the Green Card system but the decision was canceled in 2003. In Moldova there are 10 companies authorized to sell Green Card policies: ACORD Group, ASITO, DONARIS VIG, GRAWE CARAT Insurance, MOLDASIG, MOLDCARGO, MOLDOVA-ASTROVAZ, KLASSIKA Insurance, VICTORIA Insurance and ASTERRA Group.

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