Until 2022, the volume of insurance reserves and the insurers' capital must reach the level of MDL 1.8 billion each, the development strategy developed for the following five years by the National Commission of the Financial Market in Moldova (NCFM) for the non-banking financial market envisions.

At the same time, life insurance could reach a market share of 8.6% of the total market or MDL 116.5 million compared to MDL 89.2 million in 2016.

Thus, NCFM aims at aligning the legislative and normative framework in accordance with the community legislation and international principles. Among the most important objectives in the strategy are:

• alignment of risk supervision and management to standards of regime Solvency II by 2019, as well as preparation of the profile market for the application of this solvency regime;
• adoption of the European Insurance Distribution Directive (IDD) by 2019, involving the shift from the concept of intermediation to the concept of insurance distribution. Among the most important changes to be made are the requirements for professional training for broker and insurer employees, taking into account the products sold, the type of distributor. At the same time, IDD anticipates additional requirements in terms of consumer protection;
• developing and implementing by 2018-2019 the financial recovery framework for insurers;
• the gradual liberalization of the compulsory motor insurance MTPL until 2019. The NCFM will establish the structure and the method of calculating the basic insurance premiums, including the types of rectification coefficients and their calculation method, the minimum quota and the maximum quota insurer's expenses and profit margin, as well as other actuarial aspects;
• promotion of the draft of Law on National Insurance Guarantee Fund aimed at regulation of the legal status of the Fund, as well as other aspects related to its administration, financing resources, the procedure and conditions for the payment of insurance debt.
• stimulating the launch of new products, part of voluntary insurance: life and health insurance, financial risk insurance, housing and real estate insurance, agriculture insurance, etc.

Evaluation of the achievement of the strategy will be made by NCFM at the end of each year for the duration of the strategy plan, based on the pre-established monitoring indicators. The financing of the actions, as well as the technical assistance provided in the document will be made from the budget of the supervision commission.

The most important measures implemented so far by NCFM for the insurance market:

• increase of the share of capital for the insurers selling the Green Card up to MDL 22.5 million and to the brokers - MDL 100.000;
• implementation of the capitalization, solvency and liquidity requirements under the Solvency I regime. As a result of these measures, the number of insurance companies during seven years was decreased from 24 (2010) to 16 (2016). In 2016, the top 5 insurers accounted for about 67% of total market premiums, compared to 65% in 2015;
• tightening regulatory licensing requirements for insurance company and insurance intermediation. Thus, the number of brokerage companies reduced to 70 in 2016, and the volume of the intermediate premiums accounted for about 30% of the total gross written premiums;
• regulating intervention measures by setting up special administration of an insurer and financial recovery of another insurer;
• establishing the requirements for the prudential assessment of the concentration of risks on the domestic market and the volume of premiums ceded in reinsurance outside the country.