The Republic of Moldova is not prepared for the liberalization of the Motor Third Party Liability Insurance Market, given that changes need to be made in stages to avoid chaos and other problems. Austria took ten years to move from regulated prices to market liberalization. This is the opinion expressed by the journalist Vlad Bercu in the show "15 minutes of economic realism".
Parliament adopted a decision repealing a point in the 2015-approved law on the liberalization of Motor Third Party Liability (MTPL) with effect from 1 February 2018. "It is impossible to reform the RCA sector in two years".
According to Vlad Bercu, probably through the liberalization of the RCA market it was a political zeal or wanted to enter the graces of the creditors. The fact is that a two-year period is too low and the postponement was expected in the conditions of a deep crisis in the insurance market since 2015. Issues in the insurance sector were similar to those in the banking sector (billionaire theft). There were fraudulent takeovers to the largest insurance companies: ASITO, Moldasig. Moreover, on the grounds that the transition to the risk-based oversight system is not fully completed, the monthly ex-post monitoring allows late intervention, which would not definitely solve the stressful situations in companies, caused by the accumulation of diminished and unjustifiably reduced insurance premiums.
"The liberalization of RCA and Green Card tariffs is proposed to be implemented step by step in a prudent regime through Regulatory intervention measures, thus demonstrating the need to develop prompt and efficient levers that will provide NCFM with the ability to determine the calculation method basic insurance premiums, types of rectifying coefficients and their calculation method, the minimum rate and the maximum share of insurer's and profit margin expenses included in the structure of the insurance premium, as well as other actuarial aspects, "Vlad said Bercu.
To this end, in order to avoid a bad impact on the insurance market, the liberalization process (irreversibility of which is a certainty) must be (re) thought and linked to the evolving context of socio-economic development
It is difficult to gradually implement the liberalization of this market without a clear date. Canceling the entry into force of changes may give erroneous signals to external development partners. They may think that the Republic of Moldova has completely renounced the liberalization of this market.
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