The prevailing socio-economic situation has affected the situation in the insurance. According to the NCFM, for the second quarter of 2009, 27 insurance companies signed premiums of 381.2 million lei, by 10.6% lower compared with the corresponding period in 2008. The reported share of general insurance amounted to 356.9 million lei, by 11.5% less compared to the same period in 2008. At the same time. marked increase in life insurance by 5,2%, which eventually amounted to 24.3 million lei. During the reporting period was also marked decrease in the number of contracts in the portfolio of insurance companies from 783,775 to 520,021. And most of them (93,7%) are of general insurance. The number of  life insurance contracts  up to the second quarter of 2009 totaled 32,816, or 6.3% of the total. Analysis of the insurance market’s components  shows decline of compulsory insurance and motor liability policies and Green Card  at 4,2% and 25,4%, respectively. Also , decreases were note in the voluntary property insurance. According to experts, this decline is due, primarily, a decrease in the rate of growth of the leasing market of cars and car loans, through which in recent years have seen significant growth in the market. According to experts, much harder to work on updating the previously existing contracts than simply use the growth of the automobile market. And, as we know, this segment provides a major share of income of insurance companies. Peculiar positive aspect was the growth of these types of voluntary insurance, as life insurance (+5.2%) and health insurance (17.5%), as well as voluntary liability insurance (34.7%). Many experts regard this as a slight increase, but, nevertheless, to improve the culture of insurance in Moldova, as well as a signal indicating the strengthening of public confidence in the insurance system. Statistics show that  in the second quarter of 2009, the insurance companies  paid  damages and insurance reimbursements for 194 million lei, which is 57,6% more compared with the corresponding period in 2008. Of these, most (186.8 million lei) had to pay the insurance companies providing services of general insurance. Thus the bulk of payments came in compulsory motor insurance (35.9 million) and CASCO (66,7 million) Reported for the reporting period compared to the same period of 2008, net assets of insurance companies grew by 42% and reached 700 , 3 million lei. One of the main components of the basic insurance is paid share capital, which at 30. 06. 2099 amounted to 368.1 million  lei (42.1%). This increase, as experts note, was due to the requirements of the Law ¹ 407-XVI on 21. 12. 2006. In the present circumstances the insurance companies are paying great attention to the formation of reserves and reinsurance. Thus, in the second quarter of total reserves for general insurance and life insurance amounted to 465.6 million lei, by 3.7 million lei less as compared with the corresponding period last year. Analysis of financial results of insurance companies in the second quarter shows that the total net profit of 19 insurance companies declined an average of 17.1 million lei, but still at 30. 06. 2009 amounted to 63.7 million lei. According to statistics, their losses for the period amounted to 8.1 million lei, which is almost 6 times higher compared with the corresponding period in 2008. As the insurers, the unpredictability of a variety of external and internal factors significantly impede the exercise of the established business strategies for this year, but still, it is possible with dignity and with positive results to complete in 2009. Many insurers believe that the introduction of the concept of the Ministry of Construction and Territorial Development of RM, provides for compulsory insurance, real estate, will give new impetus to the development of the industry. In general, the analysis of the non-banking financial market (sector) showed its dependence of a number of factors.

 

Source: Capital Market

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