Starting with 1 January 2009, new tariffs for MTPL insurance and Green Card policies entered into force in Republic of Moldova. New calculation methods take into account the risk factors and claims ratio. Thus, "the novelty is brought by the transition from the fixed tariffs, established by Government for each insurance class, to a classic premiums calculation method, based on actuarial principles", Vladimir STIRBU, Director of Insurance Department of the National Commission for Financial Markets said.

Procedure fits international standards, and is a result of a longtime process of negotiations between interested parts, including trade unions, employers and Government. New amendments are stipulating a fix premium for both MTPL and Green Card insurance to which is applied a rectification coefficient, depending on the type of vehicle, engine capacity, number of seats, etc. At the same time, Green Card rate calculation takes into account also the zone, and there are 3 delimited zones: Zone 1 - Ukraine and Belarus, Zone 2 - Russia, Ukraine and Belarus, and Zone 3 - all the countries that are members of Green Card system.

As a result of the adopted measures, a decrease in insurance premiums is expected, which will be reflected in insurers' incomes. "Insurance premiums for policy owners in Chisinau will increase in comparison with a decrease up to 40% for those in the country side", mentioned Vladimir STIRBU.
Insurance companies are more reticent concerning the new calculation methodology,
raising a series of questions regarding the statistics accuracy taken into account in drawing up calculations as well as certain deficiencies in terms of criteria for determining tariffs for certain vehicles.

"A decrease in insurance premiums will inevitably lead to a decline in incomes in 2009. According to a recent research, the application of current rates for contracts signed in the first 10 months of the previous year conduct to a loss of approximately EUR 1.5 million", Pavel CATER, Director of Motor Insurer's Bureau from Republic of Moldova reported.

However, approved prices do not represent a final version. "A rewiew of the rates will be possible after analyzing the results for the last year 2008, most likely at the end of the first quarter of this year, added Vladimir STIRBU.

According to a study prepared by the Institute for Development and Social Initiative VIITORUL, in the third quarter of 2008, mandatory insurances represented 46% of the market, from which 23% - MTPL, 22% - Green Card and 1% - MTPL toward pedestrians. Just 4 insurers of the 33 registered companies have a Green Card license and MTPL has a 50% weight portfolios of 6 insurance companies.