Moldova Financial Sector Assessment Program : Insurance Core Principles--Detailed Assessment Report
This assessment reviews the regulatory and supervisory developments in the insurance sector of Moldova. The current assessment is benchmarked against the insurance core principles (ICPs) issued by the International Association of Insurance Supervis...
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Language: | English en_US |
Published: |
Washington, DC
2015
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Online Access: | http://documents.worldbank.org/curated/en/2015/10/25149654/moldova-financial-sector-assessment-program-insurance-core-principles-detailed-assessment-report http://hdl.handle.net/10986/22903 |
Summary: | This assessment reviews the regulatory
and supervisory developments in the insurance sector of
Moldova. The current assessment is benchmarked against the
insurance core principles (ICPs) issued by the International
Association of Insurance Supervisors (IAIS) in October 2011
and revised in 2012. The ICPs apply to all insurers, whether
private or state-owned. Specific principles apply to the
supervision of intermediaries. The assessment covers the
supervisory practices of the Comisa Nationala a Pietei
Financiare (National Commission for Financial Markets
(NCFM)) which began operations in 2007. The recent decision
to move from a pure compliance approach to a more risk based
methodology needs to be gradual and carefully staged given
the technical capacity constraints in Moldova. Insurer risk
management is not universally developed so insurers will
only be able to effectively move toward a more risk based
approach in a series of small and quite specific steps,
supported by regulatory clarity. Many shortcomings in the
observance of the ICPs will be addressed by a
well-structured transition to risk-based supervision (RBS).
Group supervision, particularly operational level
cooperation and communication with other supervisors, is
also an opportunity and a priority. Ensuring the credibility
of the regulatory regime will rely on transparent and
sustained enforcement. |
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