A Guarantee Fund in Insurance will be established in Moldova
The meeting analyzed the possible options for the creation of such a mechanism in Moldova, taking into account the international experience. The discussions took place in the context of the authorities’ efforts to strengthen the regulatory framework in the financial services sector, including the insurance sector.
Attempts to create a fund have already been made
In Moldova, the creation of a Guarantee Fund in the insurance sector has been discussed for a long time, and attempts to implement it have been made several times. Legally, the functioning of the Guarantee Fund, formed from insurers’ contributions to protect clients’ interests in case of company bankruptcy, is stipulated by law.
Currently, according to Law No. 92/2022 on Insurance and Reinsurance Activities, the Guarantee Fund in insurance is envisaged for payments in case of establishment of bankruptcy proceedings of the insurer.
That is, according to the legislation, it is a necessary element of the insurance market of Moldova, which has passed the way from legislative initiatives to legislative enshrinement.
“Green Card”
The history of attempts history of attempts to create a Guarantee Fund in insurance includes draft laws that were elaborated by the National Commission of Financial Market (NCFM), but they were not approved by the Parliament.
At the same time, Moldova has a similar mechanism (compensation fund) within the National Bureau of Motor Insurers (BNAA). This guarantee option is designed to compensate for damages caused by Green Card holders and is replenished by contributions from insurance companies.
The Ministry of Finance notes that the dialog with relevant institutions and insurance market representatives to determine the most appropriate solutions to regulate this area will continue.
