Experts, regulator, and participants in the Moldovan insurance market agree that 2025 has revealed deep structural problems in the industry, turning it into an area of heightened financial risk. Experts call the year's financial results a wake-up call for investors, indicating declining efficiency. The main expert conclusion is that insurers are operating on the brink of operating loss, as evidenced by the combined ratio rising to 103.5%. This means that operating expenses and claims have exceeded collected premiums. The growth in expenses and claims (16.3%) critically outpaced the incoming flow (+3.1%). This led to a 75.2% reduction in net profit for the sector, to MDL 72.9 million for the entire market. Two large companies even ended the year with a net loss.
According to Logos Press, the return on equity (ROE) in the insurance sector was 3.9%, 12.7 percentage points lower than in 2024. Return on assets (ROA) was 1.3%, 4.2 percentage points lower y-o-y.
Experts also note a "dangerous" dependence on motor insurance. Insurance products exhibit a critical imbalance. Approximately 48% of all market premiums are generated exclusively by MTPL&Casco, and if Green Card premiums added, this segment accounts for over 71.6% of the non-life market. Experts note that the 13.4% decline in the average MTPL price and the 10.9% decline in Green Card insurance have deprived companies of a safety cushion, while simultaneously increasing the cost of motor parts and repairs. The management of Asterra Grup, the market leader in terms of GWP, notes that maintaining its leadership position is becoming increasingly expensive. Representatives of leading companies believe it is essential to develop voluntary insurance products, such as voluntary health insurance (VHI), personal property insurance, and corporate insurance. Experts expect growth in the VHI segment of 10-15% this year, and in motor insurance (MTPL/Casco) of 0-5%. Overall, the Moldovan insurance market is adapting to the growing number of insurance claims and rising repair costs, maintaining stability through reserves.
Experts also note the growing role of intermediaries in the market – their share has increased to 61.9%. Meanwhile, brokerage network representatives claim that digitalization and clients' shift to intermediaries increase transparency and trust in the market. From the insurers' perspective, brokers are taking the bulk of sales profits, leaving insurance companies with only the risk of payments. In 2025, insurance companies paid intermediaries MDL 707.1 million, representing a massive liquidity drain that exacerbated the decline in insurers' own net profits. In the life insurance segment, dependence on intermediaries even reached a critical 95.5%.
Official comments from the regulator, the National Bank of Moldova (NBM), focus on long-term stability: despite falling profitability, the market assets increased by 7.1% (to MDL 5.9 billion), and liquid assets account for over 61% of the portfolio. All companies maintain solvency indicators within the NBM's minimum standards. The regulator emphasizes that, despite a decline in profits, technical reserves and capital remain stable. At the same time, due to the market's high sensitivity to motor insurance prices, the NBM has announced its intention to tighten controls on the use of base tariffs and coefficients to prevent dumping and bankruptcies. For their part, insurance company executives are betting on radical changes. Companies plan to actively develop their own mobile apps and online sales to reduce dependence on brokers and keep commissions within the companies, the source writes.
* 1 EUR = 19.7597 MDL (December 31st, 2025)
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