As the NBM noted in its annual review of the insurance sector, at the level of the entire insurance market, the net result from the activity was positive. Net profit amounted to 293.8 million lei, which is by 14.7 million lei or 4.8% less than in 2023. The return on equity and assets was also lower than last year’s indicators.
Last year in Moldova there were 9 insurance companies (of which 8 companies carried out only general insurance activity and one carried out mixed activity), 48 insurance or reinsurance brokers, 52 insurance agents and 33 bank insurance agents.
The year as a whole was characterized by an increase in assets, capital, technical reserves and solvency ratio. Insurance companies accrued gross premiums amounting to LE 3.2 billion, 10.8% more than in 2023.
In the total volume of gross premiums accrued for general insurance, the largest share is held by the classes of compulsory motor third party liability insurance (internal MTPL insurance, external – green card, TIR carnet, CITC carnet) and insurance of land vehicles other than railway vehicles (CASCO), which account for more than 73.5% of the market. These are followed by fire and other natural catastrophe insurance (8% of premiums). For the other classes of insurance, gross premiums amounted to less than 156 million lei, or 5% for each class.
The amount of paid damages in aggregate for the two insurance categories exceeded the previous year’s payments by 27% and amounted to over one billion lei.
According to the market operators’ data, over the last three years, insurance cases have become more frequent in both insurance categories. Out of the total amount of compensations, 628.7 million lei (49.2%) were compensations related to MTPL and Green Card. The growth of indemnities is 28%.
Apart from compulsory insurance, the most significant increase in losses was recorded in the classes of “Insurance against fire and other natural disasters”, “Insurance of land vehicles, except railway transport (hull insurance)” and “Other property insurance, including insurance of agricultural crops” (32% increase in losses).
