According to the National Bureau of Statistics, in 2025, the insurance market in Moldova shows a moderate growth in premium volumes against the background of a sharp increase in costs and a decline in the sector’s profitability.
On the whole, last year insurance companies collected gross insurance premiums in the amount of 3351.2 million lei (+3.1%) and paid compensations and insurance indemnities in the amount of 1492.9 million lei, up by 16.3%.
The main growth of premiums was recorded in the segment of insurance of property, fire and natural disasters, where collections increased by 21%, although payments for these risks almost halved. MTPL payments for damage caused by motor vehicles increased and amounted last year to about 8 million lei (+26%), although the “premium collections” of motor insurance for the first time dropped significantly (-4.6%).
The insurers’ recorded revenues and expenses grew by 1.1% and 6.2%, respectively, compared to the figures for 2024. Profit before tax amounted to 83.1 million lei, which is approximately 4.2 times less compared to 2024.
Traditionally, the most reliable and largest insurance companies in Moldova include: MOLDASIG (became part of the international Vienna Insurance Group); DONARIS VIG; GRAWE CARAT; ASTERRA GROUP, MOLDCARGO, GARANȚIE, TRANSELIT.
Sacrificing profits to stay in business
These insurance companies had to do all year round.
The decrease in profitability of the insurance sector in Moldova in 2025 is due to a combination of several factors. But, first of all, it is caused by the outstripping growth of expenses and stagnation of revenues in key segments.
Particularly noticeable was the growth of indemnities for domestic MTPL and external insurance “Green Card” (+18.3%). The average amount of indemnity under the Green Card increased to 85 thousand lei per car.
The sector is going through restructuring due to the transition to online sales of car policies, which temporarily destabilized cash flows. In addition, the market witnessed an increase in commissions of insurance intermediaries (brokers and agents), which grew by 13.6%, and their share in total sales reached 65%.
The Moldovan insurance system went through a serious “shake-up” due to new requirements of the regulator and changes in payment algorithms. At the end of the year, regulators initiated large-scale inspections of insurance companies to assess their financial stability.
Tougher norms of funds reservation and solvency requirements required the diversion of additional capital. The profitability of investment instruments, in which companies place their reserves, decreased.
Financial stability
Despite the fall in profits, the sector, according to the National Bank, remained stable. Companies were obliged to increase insurance reserves, which “ate” net profit, but increased guarantees of payments to clients.
Weak players started to leave the market or consolidate with larger ones (for example, strengthening of Vienna Insurance Group through Moldasig and Donaris). The solvency ratio remained above the market average, which minimizes the risk of bankruptcies.
The regulator introduced new rules of payments. The main change affected auto insurance (MTPL and Green Card): direct settlement of losses added costs to insurers. Now the victim can apply for payment to his insurance company, not to the company of the guilty party. This has accelerated the process of receiving money, on the one hand, but it has not spared the insurance business from losses associated with settlement, which is not always justified, according to insurers.
In addition, with the introduction of mandatory electronic policies, the fixation of road accidents through the “Europrotocol” began to be processed faster. The claim processing time has been reduced to 15-20 days, and liability limits have increased.
The maximum amounts of payments for damage to health and property were revised upwards, which was also one of the reasons for the growth of insurers’ overall costs.
Thanks to the digitalization of the system, a unified database has been introduced, which excludes manipulation with the cost of spare parts when calculating damage (average market prices are used).
Cost liberalization
The liberalization of the insurance market, officially launched in Moldova on January 15, 2025, has fundamentally changed the principles of price formation and competition in the sector.
The main consequences of liberalization have been reduced profitability and increased competition for the insurance business. Before liberalization, the cost of MTPL and Green Card policies was the same in all companies and was strictly regulated by the state. Now, each company calculates the base premium independently and applies its own adjustment coefficients based on its risk portfolio.
The new methodology is not yet perfect. Calculations are based on current statistical data, which has made tariffs more flexible, but has led to their increase for certain risk groups (e.g. cabs).
Liberalization has pushed companies to fight for “quality” clients, primarily corporate clients. The gap in the cost of insurance between different companies became noticeable, which forced car owners to compare offers more actively. To attract clients, insurers started to offer additional services and more lenient conditions for voluntary types of insurance.
Impact on financial indicators
The transition to market prices became one of the reasons for a temporary decrease in the sector’s profitability and the transition to “price wars” to outperform competitors.
At the initial stage, some companies cut prices to capture market share, which negatively impacted profits as payouts increased (+16% over 9 months). Liberalization coincided with an increase in liability limits, which led to an increase in the average amount of compensation (up to 85 thousand lei under the Green Card).
