MOLDOVA: a well-thought-out strategy allowed GENERAL ASIGURARI to become one of the TOP-3 in the market

17 June 2021 — Marina MAGNAVAL
For four years of work since creation in 2016, GENERAL ASIGURARI entered the TOP-3 companies in Moldova. According to the results of 1Q2021 (GWP volume), the company ranks 3rd in the insurance market and 2nd in the non-life insurance market, said Vitalie BANARU, CEO of GENERAL ASIGURARI SA, in an interview with Capital Market.

As Vitalie BANARU noted, a well thought out strategy helped to achieve such results. In terms of types of insurance, according to the 1Q results, the company ranks first in the agroinsurance segment, second in accident insurance, property insurance of individuals and legal entities, MTPL, Green Card and third in cargo insurance, general liability insurance.

The CEO of GENERAL ASIGURARI emphasized the company's absolute leadership in agricultural property insurance, which is a more complex type of insurance that depends entirely on climatic conditions. "As a result of a thorough analysis of the agricultural insurance sector, we were able to identify opportunities for the segment's development. Our specialists, together with representatives of the Ministry of Agriculture, after two years developed a new law on subsidized insurance in agriculture. The new law came into force on January 16, 2021, and it is much more perfect than the previous legislation. It accelerated development of agricultural insurance, as a result, total premiums in this type of insurance in the first five months of this year alone tripled compared to the premiums for the entire 2020", he said.

Talking about the difficult year 2020, Vitalie BANARU noted the impact of the pandemic on the insurance sector, which has declined by about 9%. At the same time, GENERAL ASIGURARI not only maintained its position, but also registered an increase in GWP by about 10%, thanks to the rapid change in the company's strategy, adaptation to new conditions and the introduction of new business management rules. This allowed the company to move up from fifth to third place in the insurance market.

For 2021, GENERAL ASIGURARI forecasts GWP of about MDL 230 million (~EUR 10.72 million*), that is, 12% more y-o-y and expects significant results from insurance products such as agroinsurance, property insurance, motor insurance (Motor Hull, MTPL, Green Card), and development of the bancassurance.

Vitalie BANARU is confident that the market will become more active soon and new insurance products will appear. At the same time, he noted the low level of insurance coverage and insurance culture in Moldova compared to the Baltic markets. He believes that the market is able to double the GWP volume of MDL 1.5 billion recorded in 2019-2020, supported by voluntary insurance, in particular property insurance, accident insurance and liability insurance, the share of which in the market portfolio is currently insignificant.

*at the following exchange rate:

1 EUR = 21.4503 MDL (16.06.2021)

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