Insurance market in Moldova sees improvements, financial market regulator official

The gross insurance premiums collected by the 24 insurance companies in the first quarter of this year totaled 192 million lei, an increase of 7.7% compared with the corresponding period last year, Info-Prim Neo reports, quoting the national financial market regulator. According to the regulatory authority's deputy head Aurica Doina, the insurance companies in the period paid insurance indemnities and compensations of 77 million lei, up over 15% from the same period last year. The insurers' net assets on March 31 were 893 million lei, a 35% increase on 2009. “The insurance market in Moldova sees improvements following the implementation of the law that obliges the insurance companies to have a minimum registered capital of 9 million lei,” Aurica Doina said. There are yet a number of problems that hinder the development of the insurance market. “First of all, the insurers must convince the people that they are near them. Regretfully, the insurance companies do not provide a sufficient number of products, especially as regards protection in case of economic difficulties. At the same time, the people are not adequately informed about the existing products,” the official said. In another development, Aurica Doina said an electronic reporting system was created for the insurance companies. It was introduced on a trial basis and will become functional on January 1, 2011. “We intend to put into operation an information system on domestic and international auto insurance that will allow to transparently obtain information about the sold insurance policies,” she said. This year, the national financial market regulator will formulate 14 regulations to enforce the legislation on insurance.