Insurance companies benefited from training on Solvency II and IFRS 17 implementation, organized by NCFM with USAID and AAM support

For five days, actuaries, CFOs, and risk managers from insurance companies participated in an extensive training program aimed to prepare them for the Solvency II Directive, as well as the IFRS 17 Standard implementation. The course was organized by the National Commission for Financial Markets (NCFM) in cooperation with the USAID Moldova Financial Sector Transparency Activity (FSTA) and the Actuarial Association of Moldova (AAM).

The first module, held between March 20 and 22, aimed at familiarizing insurance companies with the requirements of the Solvency II Directive (the main EU legislative act in the field of insurance), in fact, partially transposed in the new law on insurance or reinsurance activity, entered into force earlier this year. Thus, during the sessions, the international expert Siegbert Baldauf addressed several topics of interest to insurers, ranging from the calculation of technical provisions and the determination of stress parameters to the role of the actuarial function and risk management.

During the second module, held on March 27 and 28, international expert Dan Sfetcu provided a detailed presentation of the requirements set out by the new international financial reporting standard for insurance contracts - IFRS 17. His presentations covered the scope of IFRS 17, information presentation and disclosure requirements, evaluation models, as well as other aspects regarding the transition to the new financial reporting standard.

Present at the event, the Vice-chairman of the NCFM, Adrian Gheorghita, mentioned the importance of strengthening capacities of the professional participants of the insurance market in the implementation of Solvency II and IFRS 17 requirements: "We initiated this activity because we aim to develop and maintain high professional standards both among the supervisory authority and the sector”.

The Director of the USAID FSTA Project, Matthew Macellaro, present at the certificate handout ceremony, welcomed the interest of insurance industry representatives in applying international requirements and standards. "The implementation of both the Solvency II regime and IFRS 17 represent quite complex and complicated processes, therefore it is important that those involved in this transition benefit from thorough training", he stressed.

In his turn, the President of AAM, Oleg Verejan, thanked NCFM and USAID FSTA Project for supporting the initiatives to strengthen the insurance specialists’ capacities, in particular, given that the preparation for the new regulations is the insurance companies and actuaries top priority.

Note: The training program on the Solvency II and IFRS 17 implementation is a continuation of the activities supported by the USAID FSTA Project for the alignment of the Moldovan insurance sector with international practices and standards. Previously, the USAID FSTA Project supported the organization of several trainings in the field of prudential supervision and risk management, as well as the development of the Instruction for the preparation of the ORSA Report (Own Risk and Solvency Assessment).

The NCFM and USAID FSTA Project discussed opportunities for collaboration on strengthening the supervising authority's capacities

NCFM developed the regulatory framework on crowdfunding, with the support of the "Strong Businesses and Communities for Moldova" project, financed by the German Government and implemented by GIZ Moldova