Context
With the liberalization of the RCA (Responsabilitate Civilă Auto) insurance market, insurers are now empowered to set their own pricing strategies. This regulatory change demands advanced data modeling, interoperability, and risk-based underwriting to ensure competitiveness, fairness, and compliance.
Challenges
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Fragmented historical data across insurers and regulatory platforms
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Lack of standardized risk assessment models
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Limited capacity for dynamic pricing based on driver behavior, vehicle profile, or claims history
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Compliance with new transparency and reporting obligations
Project Objectives
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Transform RCA data into a format usable for risk-based pricing models
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Enable real-time exchange of vehicle and policyholder history across insurers
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Develop tools for claims analysis, driver profiling, and fraud detection
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Ensure alignment with liberalization frameworks and supervisory authority expectations
Key Activities
✅ 1. Data Cleansing & Normalization
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Standardized vehicle categories, driver identifiers (IDNP), and claims codes
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Validation against national vehicle registry and previous insurers’ databases
✅ 2. Unified Risk Scoring Model
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Developed a modular algorithm to score drivers based on:
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Claims frequency and severity
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Driving history and vehicle usage
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Demographics and geography
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✅ 3. APIs for Data Exchange
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Built RESTful APIs to allow insurers to:
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Query driver and vehicle RCA history
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Submit policy issuance and cancellation events in real time
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✅ 4. Pricing Engine Integration
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Embedded risk scores into internal tarification engines
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Enabled simulation of premium scenarios based on configurable risk weights
✅ 5. Compliance Reporting Tools
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Automated monthly data exports to the insurance supervisor (e.g., CNPF)
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Integration of indicators for transparency: premium breakdown, risk rating bands, claims ratios
Technology Stack
| Component | Technology |
|---|---|
| Data Warehouse | PostgreSQL + ETL (Talend / Azure Data Factory) |
| APIs | .NET Core |
| Integration | National Registry, Reinsurers |
| Security | OAuth2.0, encryption at rest and in transit (TLS 1.3) |
Outcomes
- Insurers gained real-time access to enriched RCA history for personalized pricing
- Market competition shifted from flat pricing to risk-adjusted premiums
- Claims fraud detection improved by cross-insurer data sharing
- Regulatory trust improved due to timely, structured compliance reporting
Conclusion
The adaptation of RCA data for insurance liberalization is a foundational step in modernizing Moldova’s auto insurance sector. It enables customer-centric pricing, fosters fair competition, and strengthens regulatory oversight.
