This assessment reviews the regulatoryand supervisory developments in the insurance sector ofMoldova. The current assessment is benchmarked against theinsurance core principles (ICPs) issued by the InternationalAssociation of Insurance Supervisors (IAIS) in October 2011and revised in 2012. The ICPs apply to all insurers, whetherprivate or state-owned. Specific principles apply to thesupervision of intermediaries. The assessment covers thesupervisory practices of the Comisa Nationala a PieteiFinanciare (National Commission for Financial Markets(NCFM)) which began operations in 2007. The recent decisionto move from a pure compliance approach to a more risk basedmethodology needs to be gradual and carefully staged giventhe technical capacity constraints in Moldova. Insurer riskmanagement is not universally developed so insurers willonly be able to effectively move toward a more risk basedapproach in a series of small and quite specific steps,supported by regulatory clarity. Many shortcomings in theobservance of the ICPs will be addressed by awell-structured transition to risk-based supervision (RBS).Group supervision, particularly operational levelcooperation and communication with other supervisors, isalso an opportunity and a priority. Ensuring the credibilityof the regulatory regime will rely on transparent andsustained enforcement.
PDF
download
878987797
028-85220240
