Resilience of the insurance sector in the Republic of Moldova

Abstract

Global economies are currently facing risks from climate change, financial crises, pandemics and natural disasters. The ability to manage these risks and minimize their negative impact is essential to maintaining economic stability. The key aspect of this capability is the concept of economic resilience, which describes the ability of an economy or sector to resist and recover quickly from shocks. This study investigates the resilience of the insurance market in the Republic of Moldova to the COVID-19 pandemic. The purpose of the research was to analyze the evolution of this sector and to determine the capabilities of insurers to restore their financial indicators after such a severe disruption as the COVID-19 pandemic. The methods include an analysis of the concept of resilience from a scientific, institutional and legal perspective, as well as a dynamic analysis of the aggregated indicators of the insurance market from 2014–2023. The data come from international and national reports, including from the OECD, the European Commission and the National Bank of Moldova. The key indicators examined were the volume of premiums and claims, the profit of insurance companies and their number, the degree of penetration and the density of insurance. The results indicate an initial decline in the performance of the insurance market during the pandemic, followed by a recovery. The study concludes that the insurance sector in the Republic of Moldova is resilient, demonstrating the ability to absorb shocks and adapt quickly.