Moldovan insurances market increases by 15 per cent in first quarter of 2019
15:25 | 22.05.2019 Category: Economic
Chisinau, 22 May /MOLDPRES/ – The number of insurance contracts increased by 15 per cent at the first quarter end of 2019 compared to similar period of 2018, according to economist, Viorel Girbu, in an analysis on the Credit history office (BIC) www.infodebit.md. The growth was moderate – 04 per cent, compared with the end of 2018.
The civil liability insurance contracts held a 77 per cent share of the total number of insurance contracts at the end of March, thus representing the main insurance activity in Moldova.
The economic expert believes that compared to 2018, the insurance activity accounted for 47 per cent of the total gross written premiums. Around 71 per cent of the number of insurance contracts came to the top five most important insurers, out of a total of 17 as at the end of March.
Although the insurance sector has developed over the years in Moldova, its importance to the national economy is 10 times lower than the situation in developed economies, says Viorel Girbu. The volume of gross written premiums increased from MDL 914 million in 2010, up to MDL 1.5 billion in 2018. However, as a share of GDP, the target indicator is on a steady downward trend. If in the developed countries the volume of gross written premiums represents about 08 – 09 per cent of GDP, in Moldova the volume of gross written premiums represented only 0.8 per cent of GDP in 2018, compared to 1.06 per cent in 2010.
The compensation and insurance indemnities paid in 2018 amounted to MDL 527.5 million, up 7.4 per cent compared to the payments made in 2017, according to data from the National Bureau of Statistics (BNS).
According to the BNS's, in 2018 the insurers' revenues amounted to MDL 2 billion 296 million and decreased by 1.4 per cent compared to 2017. The expenditures were MDL 2 billion 250 million, decreasing by 0.8 per cent compared to 2017. The profit before tax decreased by 30.0 per cent and amounted to MDL 45.8 million, compared to MDL 65.4 million in 2017.
