Insurance expert on Radio Moldova: ‘We insure goods more than health and life’
In the Republic of Moldova, health and life insurance are among the least popular forms of coverage for individuals. Many people perceive these options as too expensive or lack a clear understanding of their real benefits, leading them to avoid purchasing insurance. However, experts in the field emphasize that these insurance products should not be overlooked, as they can offer crucial financial support in the event of unexpected and costly life situations.
The local insurance market is predominantly general insurance, with over 90% of it comprising compulsory motor liability policies.
"These realities reflect a society that prioritizes material possessions over health and life," stated Svetlana Lupașcu, the administrator of the Union of Insurers of the Republic of Moldova, during the program Spațiul Public on Radio Moldova.
In the Republic of Moldova, an individual invests approximately 1,300 to 1,400 lei in insurance annually, which amounts to "not even 4 lei" per day, as emphasized by Lupașcu.
Insurance expert Dumitru Pînzaru explained that life insurance allows individuals to save money for periods when they can no longer work and offers financial protection against significant risks.
The amount of the insurance premium is influenced by several factors, including the insured risk, income, and the individual's age.
"If a contract is established for 40 years, with an annual insurance premium of 10,000 lei, the insured amount will total between 430,000 and 440,000 lei by the end of the term, assuming continuous payment of premiums. The investment profit will also be added to this amount," Pînzaru highlighted.
In the event of the insured's death, heirs can claim the entire insured amount, even if premiums were paid for only a few years.
Insurance companies offer life insurance policies to individuals up to 65 years old, and in some cases, older applicants.
"Ideally, life insurance should be obtained starting at ages 20 or 25 for those who are working and in good health. Companies will request medical check-ups at the time of contract signing and if the risk profile changes," Pînzaru noted.
Experts believe that digitalization will completely transform the insurance sector, enabling online signing, automated valuations, and more flexible products for self-employed individuals and those with unstable incomes. The market could achieve a “healthy level” of coverage within 7 to 10 years, provided that financial literacy and trust in institutions improve.
