Foreign insurance or reinsurance companies will be able to operate in Moldova only through branches licensed by the supervisory body in our country.
This is provided for by Regulation on registration/licensing of insurance or reinsurance companies and branches of insurance or reinsurance companies from third countries, approved by the Board of the National Financial Market Commission. The normative act was elaborated in order to implement the provisions of the Law on insurance and reinsurance activity, in force since January 1, 2023. It contains licensing requirements for branches of insurance or reinsurance companies from third countries - they will be able to work in Moldova only through branches licensed by the supervision body. The document describes the documents to be submitted at the registration and licensing stages. According to the new regulations, the procedure of licensing of insurance/reinsurance organizations and branches of insurance/reinsurance companies from third countries is divided into two stages: preliminary approval for state registration and issuance of license of insurance or reinsurance activity. The regulation establishes the list of documents and/or information that must be attached to the request of the professional participant at each stage of the licensing procedure. Also, the new act specifies the documents and information that must be submitted to the supervisory authority for reissuance of the license, issuance of a certified copy of the license and duplicate license, the conditions under which the registration documents of insurance or reinsurance companies and branches of insurance or reinsurance companies from third countries may be amended. The document contains the requirements for applicants for a license at the stage of developing a three-year business plan, and also stipulates the main factors affecting the success of the business model and the ability of the insurance or reinsurance company to generate income. A separate section of the document describes the requirements for insurance/reinsurance organizations or a branch of an insurance/reinsurance organization from third countries, carrying out activities on compulsory liability insurance of vehicles’ owners. It should be reminded that a whole complex of amendments has been introduced in the Law on Insurance and Reinsurance Activity, related to the regulation of activities in Moldova of insurance companies licensed in third countries. They concern not only the licensing of branches of foreign insurance companies, but also measures and methods of supervision, inclusion in the register of professional participants of the insurance market, providing statistical information about the activity, mandatory requirements for publishing financial information and informing the insured, ensuring transparency. The new law also establishes the procedure for special management in such companies, etc. // 20.06.2023 – InfoMarket
