Insurance Market of Moldova: Problems and Trends of Development

Insurance is a significant sector of the non-banking financial market in the Republic of Moldova. The main function of the insurance is to manage the risks, and the correct management of the risks contributes to the economic development, maintaining the financial stability and increasing the welfare of the population. Insurance is a very effective technique to spray individual losses on a wide range, making them easier to handle by covering as many people as possible. Insurance is a form of risk protection, a service that is sold and bought in the insurance market, a market that is an important component of the financial services market. Currently, the insurance market in the Republic of Moldova represents a profitable sector of the non-banking financial market, which shows dynamic growth rates but also has development reserves. The importance of the development of the financial market in Moldova also implies a solid and rapid development of the insurance segment due to its role in the economy. Practice shows that the insurance market contributes to economic growth by improving the investment climate and promoting more efficient activities than in the absence of this risk management tool.