Romanian experts share experience, make recommendations on risks associated with RCA liberalisation in Moldova

Chisinau, 05 September /MOLDPRES/ – A group of experts from TAIEX Programme, representatives of the Financial Supervisory Authority (ASF) from Romania, have shared to the specialists of the National Commission of the Financial Market (CNPF) the experience accumulated in the field of liberalising RCA tariffs, implementing the European Directives Solvency II and IDD (Distribution Directive in Insurance), as well as anticipation of risks generated by the liberalisation process and transition to the risk – based supervision regime.

The press service of CNPF specifies that the mission of experts took place during the period 02 – 05 September, being organised and financially supported by the European Commission through the TAIEX Technical Assistance and Information Exchange Instrument.

The mission included a series of trainings for CNPF specialists, in which there were presented the experience of Romania on liberalisation of auto insurance and measures taken on it by the Romanian supervisory authority, advantages/disadvantages of introducing the reference rates, practices of increased transparency and reporting, estimating the impact of liberalisation reform on insurance prices and premiums, as well as experience of ASF of mitigating the risks/threats that may arise in connection with the liberalisation of RCA tariffs.

The European experts have recommended to Moldova to conduct stress tests of the financial statements of the domestic insurance companies before launching the implementation of the Solvency II regime. TAIEX experts also mentioned the importance of creating a guarantee fund to overcome possible insolvency situations on market.

On 01 July 2019, it was initiated the transition process to liberalised tariff regime for compulsory internal RCA insurance in Moldova, which provides for insurers to apply the reference premium calculated by supervisory authority.