Home / MEDIA ABOUT IDIS / Economy / New methodology of calculation of premiums of obligatory auto civil liability insurance (OACLI) and - Green Card" corresponds to international standards and will be more efficient if the process of presentation of information is more transparent,-expert Alexander Zgardan.
09.12.2008 Infomarket 444
During the presentation of the research - Characteristics of obligatory insurance in the field of auto transport in Moldova", the expert of IDIS Viitorul noted that within one year since the legislation has come into force, many difficulties have appeared. According to Alexander Zgardan, with the approval of the new tariffs both OACLI premiums as well as the Â«green cardÂ» premiums will reduce by about 25-45%. According to the experts, 20 percent inflation rate, used in the official methodology is not true to life. According to the experts, it would be appropriate to apply average inflation rate over the past 5 years. Alexander Zgardan also believes that the level of profitability, proposed in the new methodology - 10% on OACLI and 7% on the Â«green cardÂ» - is relatively high for the obligatory insurance. Â«Insurance companies do not make big efforts in attracting the clients. Â«The level of profitability of these types of insurance in EU countries tends to zeroÂ», - said Zgardan. In his view, it will be more correct to establish maximum level of 5% for both types of obligatory insurance. Another problem identified in the study is concentration of OACLI in two leading companies that own 61% of the market. Disloyal competition and forgery of Â«Green CardÂ» policies is also a big problem. According to the study, in the third quarter, 2008, the share of obligatory insurance amounted to 46%; 23% of which- is obligatory auto civil liability insurance; 22% - Â«Green CardÂ», and 1% - insurance of the transporters liability to the pedestrians. Of 33 insurance companies operating at the market, only 4 have a license for issuing insurance policies Â«Green CardÂ».