The new Law on the business of insurance or reinsurance will enter into force on January 1, 2023

The National Commission for Financial Markets (NCFM) reminds that, starting from January 1, 2023, the new Law on the business of insurance or reinsurance will enter into force. In order to bring the activity of professional participants in line with the latest legal provisions, NCFM urges the concerned entities to get informed in advance of the provisions of the respective document.

The Law on the business of insurance or reinsurance establishes the rules of registration, authorization, and licensing, as well as insurance or reinsurance activity and insurance distribution. It also sets out prudential requirements for insurance market participants and rules for the supervision of insurance or reinsurance undertakings.

The new document stipulates a gradual increase in the minimum capital requirements (equity) for insurance undertakings, which shall be met gradually - in five years.

At the same time, the normative act also provides gradual compliance (in four years) to the norms on assets admitted to cover technical provisions and the minimum capital requirement.

Starting with January 1, 2023, the Law on Insurance (No. 407/2006) will be repealed. The regulations issued by the supervisory authority based on the Law no. 407/2006 shall be applied unless they contravene the Law on the business of insurance or reinsurance, until the explicit settlement of their nullity, context in which NCFM initiated the development of the secondary normative framework.

We mention that the Law on the business of insurance or reinsurance was voted bu the Parliament on April 7, 2022.

NCFM drafted the document with the technical assistance of World Bank experts as part of the "Insurance Market Reform in Moldova" project, which aims to partially transpose the Directive 2009/138 / EC of the European Parliament and of the Council of 25.11.2009 on the taking-up and pursuit of the business of Insurance and Reinsurance.

NCFM translated the document to ensure the transparency of the activity and to simplify access to information for all stakeholders, including foreign investors, non-banking supervisory authorities from other countries, international institutions, etc.

Law on the business of insurance or reinsurance (English/Romanian)

Note: Please consider that this document is an unofficial English translation.

Progress in the MEFP implementation analyzed by the NCFM and IMF

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