Moldova joins Catastrophe Risk Insurance Facility

The Catastrophe Risk Insurance Facility that will be created in Southeastern Europe and Caucasus will cover Moldova as well, Vladimir Stirbu, of the national financial market regulator, said in a news conference on June 8, quoted by Info-Prim Neo. The facility is supported by the World Bank and will provide solutions for reinsuirng such natural calamity risks as earthquakes, floods, drought and hard frost. Vladimir Stirbu said the insured Moldovan SMEs and private individuals will pay an insurance premium equal to the risk, while the insurance damages will be paid immediately after assessing the damage. The insurance tariffs will be different for every country and will depend on the risk exposure level. Besides the assistance that Moldova will receive from the World Bank in creating the necessary legislative and regulatory framework, the national insurance specialists will be trained to assess the risks and damage and will be able to take part in damage assessment and liquidation missions in different countries that joined this initiative. MP Veaseslav Ionita, chairman of the parliamentary commission for economy, budget and fiance, said the authorities aim to change the people's attitude to insurance. On the one hand, the insurance premiums will become lower, as the Government will pay a contribution to the Facility, which is estimated to be US$5 million. On the other hand, the people will have greater confidence in insurance and the Government will not have to cover the damage caused by calamities exclusively from the budget. Albania and Bosnia and Herzegovina also joined the Catastrophe Risk Insurance Facility, with a number of countries from Caucasus also considering such a move.