Despite a significant increase in written insurance premiums in 2021, the level of insurance penetration in GDP remains moderate, - NCFM.
According to a press release from the National Commission for Financial Market, the level of insurance penetration in GDP in 2021 amounted to 0.8%, which is 0.1 p.p. more than in 2020. For comparison, in the countries of the region this figure varies between 1-1.5%. “This fact indicates that the GDP growth rate was higher than the expansion of insurance/reinsurance activities. This is due to the financial and economic situation of Moldovan citizens, who give priority to essential goods and services,” the NCFM notes. In 2021, according to the commission, the total volume of gross premiums written in the insurance market amounted to 1 billion 926.3 million lei, which is 32.6% higher than in 2020, this growth occurred against the backdrop of a decrease due to pandemic in the volume of collected premiums in 2020 by 10.6%. In 2021, the insurance market continues to focus on general insurance, which accounts for 94.8% of all gross premiums (1 billion 825.7 million lei), life insurance - 5.2% (100.5 million lei). At the same time, auto insurance remains dominant: it accounts for more than 70% of written premiums. The largest volume of premiums fell on compulsory motor third party liability insurance - 853.1 million lei (+ 33.5% compared to 2020), including internal motor third party liability insurance - 585.4 million lei (+ 26.9%) and the Green Card » - 267.7 million lei (+50.5%), followed by CASCO - 417.8 million lei (+23.2%). The amount of compensation paid in 2021 increased by 11% compared to the previous year and amounted to 662.1 million lei. About 94.8% of indemnities were paid out under general insurance (about 628 million lei), and 5.2% - under life insurance (34.2 million lei). The largest amount of indemnities was paid for internal compulsory motor third party liability insurance - 267.1 million lei (+37.9%), CASCO - 227.5 million lei (+25.6%), "Green Card" - 58.8 million lei ( +21.1%), health insurance - 34.7 million lei (+30.8%). The adopted Law on subsidized insurance in the agricultural sector, which provides for the possibility of paying insurance premiums in installments and increasing the state-subsidized contribution from 50% to 70%, led to an increase in insurance premiums for this type of insurance by 4 times - from 16.8 million lei in 2020 to 67.5 million lei in 2021. Herewith, the amount of compensation paid decreased from 26.4 million lei to 16.5 million lei (-37.5%). Meanwhile, the NCFM states that there is a steady growth trend in the insurance market both in accrued premiums and indemnities paid (including due to the introduction of a mechanism for the peaceful ascertainment of accidents and an increase in the price of spare parts). According to the NCFM, over the past 3 years, the volume of operating (insurance) activities of insurance companies has decreased from 66.1 million to 25.1 million lei. Thus, insurance companies have been suffering losses for a long time, primarily due to auto insurance. The solvency ratio of insurance companies is higher than the standard value and ranges from 100.25% to 341.39%, while the liquidity ratio varies from 51.62 to 1.15. // 12.04.2022 — InfoMarket
