MOLDOVA: Draft law on insurance and reinsurance activities was approved

5 November 2020 —
On October 28, the Government of Moldova approved a draft law on insurance and reinsurance activities, developed by specialists of the National Commission for the Financial Market (CNPF) together with experts from the World Bank. The draft law will be submitted to Parliament for consideration and further approval.

The main task is to bring the market in line with Solvency II standards - introduction of new prudential, corporate management and risk management requirements for insurance companies. The document also stipulates the obligation of insurance and reinsurance companies in order to guarantee transparency to publish the most significant information about their solvency and financial situation.

The document mentioned that "the purpose of this law is to ensure stability, transparency and freedom of provision of services in the insurance sector, prevent systemic risks and protect the rights of policyholders, recipients of insurance policies and third parties," the state news agency MOLDPRES writes.