2014年-世界发展银行全球_Moldova_Financial_Sector_Assessment_Program___Insurance_Core_Principles--Detailed_Assessment_Report_44页_1mb

Summary of the Financial Sector Assessment Program (FSAP) in Moldova

Core Content

The Financial Sector Assessment Program (FSAP) in Moldova, conducted in 2014, assessed the insurance sector in light of the Insurance Core Principles (ICPs) issued by the International Association of Insurance Supervisors (IAIS). The report highlights the current state of the insurance industry, regulatory developments, and areas for improvement.

Main Points

1. Insurance Sector Overview

• The insurance sector in Moldova is small and underdeveloped, with total premiums of MDL 1,038 million (USD 90 million) in 2012.
• Non-life insurance dominates the market, accounting for 93.4% of total premiums, while the life insurance sector is nascent, with only MDL 69 million (USD 6 million) in premiums.
• Insurance penetration (premium as a percentage of GDP) is 1.2%, with life insurance at 0.08% and non-life at 1.16%.
• Insurance density (premium per capita) is low, with non-life insurance at MDL 241.15 and life insurance at MDL 15.08 in 2012.
• The sector has seen consolidation since the 2007 Insurance Law was introduced, leading to fewer insurers and more sustained competition.

2. Regulatory and Supervisory Framework

• The National Commission for Financial Markets (NCFM) has been responsible for insurance supervision since 2008.
• The NCFM has started transitioning from a compliance-based to a risk-based supervision approach, which was decided in late 2013 and is part of the 2014 operational plan.
• The NCFM has improved its capacity through hiring and training, and has developed key regulations and guidelines on solvency, AML/CFT, intermediaries, and consumer protection.

3. Observance of ICPs

• The level of observance of the ICPs is mixed, with some principles largely observed and others only partially observed.
• The report outlines the observance level for each ICP and highlights areas needing improvement, particularly in governance, risk management, and suitability of key persons.

4. Market Structure and Trends

• The non-life insurance market has a herfindahl index of 1,675, which is consistent with international benchmarks.
• The life insurance market is still underdeveloped, with a herfindahl index of 9,015, indicating high concentration.
• Motor Third Party Liability (MTPL) insurance, especially compulsory motor insurance, accounts for over 60% of non-life premiums.
• Expense rates are high, exceeding 85% of premiums in both life and non-life sectors, indicating a lack of economies of scale.
• Profitability in the non-life sector is low and marginally profitable, while life insurance has a profit-to-premium ratio of 12%.

5. Challenges and Opportunities

• The insurance sector lacks transparency, public awareness, and trust, which are critical for development.
• The "National Guarantee" scheme, which aims to protect policyholders, is not yet implemented.
• There are concerns regarding the identification of ultimate beneficial owners and the lack of robust corporate governance mechanisms.
• The sector has limited innovation and faces challenges in diversifying investment portfolios due to the underdeveloped capital market.

6. Economic and Institutional Context

• Moldova's economy has faced political and macroeconomic challenges, but has shown resilience with strong performance from 2010 to 2013.
• The economy remains vulnerable to external developments and reliant on remittances and donor support.
• The legal framework is substantive, but the judicial system is not fully equipped to handle complex commercial litigation.
• Moldova has adopted IFRS, and professional firms have access to international expertise, though domestic actuarial capacity is still limited.

Key Recommendations

• Transition to risk-based supervision should be gradual and supported by regulatory clarity and capacity building.
• Strengthen the implementation of the National Guarantee scheme to improve trust in the sector.
• Enhance corporate governance and risk management practices, particularly for life insurance.
• Improve transparency and the identification of ultimate beneficial owners.
• Develop mechanisms for consumer protection, including alternative dispute resolution (ADR).
• Address the lack of economies of scale and improve profitability and efficiency in the sector.

Conclusion

The insurance sector in Moldova has made progress in regulatory and supervisory frameworks, but it remains underdeveloped and faces several challenges. Strengthening supervision, improving transparency, and fostering development are essential to realizing the sector's potential and contributing to the broader financial and economic stability of the country.