The Influence of foreign investments on the activity of insurance companies as institutional investors in the capital market of the Republic of Moldova

Abstract

In this article were investigated the peculiarities of insurance industry internationalization, were examined the main factors which influence on attracting of foreign investments by the insurance companies and were revealed the advantages and disadvantages of foreign investments in insurance sector. To analyze the perspectives of stimulation of insurance companies’ activity as institutional investors in the capital market of the Republic of Moldova, in article was investigated international experience of investment activity of different insurance sub-industries including life and health, property and casualty, multiline, reinsurers and insurance brokers, was analyzed investment practice of insurance companies in the Republic of Moldova and was revealed the impact of foreign investments on their investment portfolio. In order to apply the best international experience in the national financial market, in this study, based on such research methods and instruments as: logical analysis of theoretical and practical materials, documentary method, analogy and grouping, quantitative and qualitative data method, method of synthesis, comparative analysis, were revealed the features of domestic insurance companies’ investment activity and offered recommendations on its stimulation, taking into account the best international practice. JEL: F21, G22, G23, O16