ASF removed a provision forcing foreign insurers to hold a central headquarters and regional units in Romania. The legislative amendment aims to boost competition.
The rationale behind ASF’s decision to ease foreign players’ access is the need to increase supply, mainly in the context in which the largest players on the local RCA insurance policy market are currently facing financial problems or dissolution, as the case of insurer Astra Asigurari, according to Ziarul Financiar.
Nine insurance companies currently operate on the Romanian RCA insurance policy market, and two more insurers, Grawe and Ergo, are expected to start selling RCA policies in the upcoming period. RCA insurance policies are the main source of income for the RCA market, considering that this segment generates nearly a third of overall underwritings.
Premiums underwritten on the RCA insurance policies reached RON2.3 billion (EUR517 million) at the end of September 2015, 15% more than in the same period a year before.