Adapting RCA Data for Insurance Liberalization

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

Fragmented historical data across insurers and regulatory platforms
Lack of standardized risk assessment models
Limited capacity for dynamic pricing based on driver behavior, vehicle profile, or claims history
Compliance with new transparency and reporting obligations

Project Objectives

Transform RCA data into a format usable for risk-based pricing models
Enable real-time exchange of vehicle and policyholder history across insurers
Develop tools for claims analysis, driver profiling, and fraud detection
Ensure alignment with liberalization frameworks and supervisory authority expectations

Key Activities

1. Data Cleansing & Normalization

Standardized vehicle categories, driver identifiers (IDNP), and claims codes
Validation against national vehicle registry and previous insurers’ databases

2. Unified Risk Scoring Model

Developed a modular algorithm to score drivers based on:
- Claims frequency and severity
- Driving history and vehicle usage
- Demographics and geography

3. APIs for Data Exchange

Built RESTful APIs to allow insurers to:
- Query driver and vehicle RCA history
- Submit policy issuance and cancellation events in real time

4. Pricing Engine Integration

Embedded risk scores into internal tarification engines
Enabled simulation of premium scenarios based on configurable risk weights

5. Compliance Reporting Tools

Automated monthly data exports to the insurance supervisor (e.g., CNPF)
Integration of indicators for transparency: premium breakdown, risk rating bands, claims ratios

Technology Stack

Component

Data Warehouse

APIs

Integration

Security

Technology

PostgreSQL + ETL (Talend / Azure Data Factory)

.NET Core

National Registry, Reinsurers

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.