The Insurance Conference of Moldova 2023 hosted an interesting moment of sharing the experience accumulated in other insurance markets, similar to the Moldovan one, in their modernization process and preparation for the EU accession.
In a flash interview conducted by Daniela Ghetu, Klime POPOSKI, CEO of Winner-VIG and Prof. at St. Kliment Ohridski University, North Macedonia, as well as founding member and Vice-President of EERIA - Eastern European Risk and Insurance Association, shared shared his opinions on the some of the most important changes that expect the Moldovan market on its development and EU accession path. Using the perspective provided by Western Balkans’ insurance markets – very similar in many respects to the Moldovan one -, as well as his complex personal professional experience both in the regulation and supervising field, and the operational and academic ones, Klime POPOSKI has touched several topics of major importance.
As MTPL is the most important non-life business line in all the non-EU markets in the region, it naturally made one of the central topics of the interview. “The main lesson learned from my experience is that you must have a clear objectives for the reforms, a vision on the targets to reach. Basen on my past experience in market supervision, there are three important targets to be reached:
- Consumer protection and greater financial stability of the companies involved with the MTPL business.
- Risk based pricing – the MTPL price cannot be a political instrument used by governments to gain popularity.
- Because of the freedom of movement, the third objective should be to have signed agreements with the Green Card system and, to achieve this, the single MTPL policy, including both domestic and international coverage, needs to be implemented.”
Another important issue brought up during the discussion with Klime POPOSKI was the insurance gap or, in other words, the lack of proper and sufficient insurance coverage of properties. “There is no magic solution to close the insurance gap in property insurance, especially where extreme weather risks are concerned. The only way to do it is establishing strong public-private partnerships,” POPOSKI said.
To find out also Prof. POPOSKI’s recommendation regarding the transition to the Solvency II supervisory regime, watch the video recording of the interview.