Moldova, three years after the modernization of the insurance market
 "2007 marked the year of a new reglementation of the law for the insurance market of Moldova. One of the most significant changes was represented by the introduction of requirements on the minimum share capital of insurers, that must reach MLD 15 million by 2012 (editor's note: equivalent to EUR 940,000)", commented Alexei TOPOROV, President of the insurance company GARANTIE.
Previously, the minimum capital for an insurance company was about EUR 18.75 thousand (MDL 300,000). Under the new regulations, it had to be increased to EUR 250,000 in 2007 (MDL 4 million), EUR 375,000 (MDL 6 million) in 2008, EUR 562.5 thousand (MDL 9 million) in 2009, EUR 750,000 (MDL 12 million) in 2010 and EUR 937.5 thousand (MDL 15 million) at the end of 2011.
"Basically, this change has ordered the insurance market, leaving only the active insurance companies (editor's note: in 2007, there were 35 active insurance companies). Many insurers seeking only immediate profit and that not longer met the requirements had to retreat", added TOPOROV.
Also, according to leaders of insurance companies in Moldova, the number of insurance companies will further reduce, as they estimated for 2012 about 15 active entities.
For companies operating on the life insurance segment, capitalization requirements are more demanding, as they have to capitalize up to EUR 1.40 million (MDL 22.5 million), and minimum share capital for reinsurers amounts to EUR 1,87 million (MDL 30 million).
These reforms can only have positive effects, of consolidation and maturation, creating profile market stability.
Note: Calculations in EUR are made for an exchange rate of EUR 1 = MDL 16.
Author: Oleg DORONCEANU, Vlad BOLDIJAR
on 06.07.2010
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