Insurance laws Romania
Romania's insurance sector is governed by a comprehensive legal and regulatory framework aimed at ensuring market stability, consumer protection, and alignment with European Union standards.
📜 Key Legislation
Law No. 237/2015 – Authorization and Supervision of Insurance and Reinsurance Activities
This foundational law regulates the licensing, operation, and supervision of insurance and reinsurance companies in Romania. It establishes the legal framework for the insurance market, ensuring compliance with EU directives and promoting market stability.
Law No. 17/2024 – Amendment to Law No. 237/2015
Enacted in January 2024, this law introduces significant reforms to strengthen policyholder protection and enhance market predictability. Key provisions include:
Special Financial Recovery Procedures: Establishes procedures for financial recovery and bankruptcy of insurance companies, including remedial planning and governance improvements
Post-Licensing Supervision Outlines the Romanian Financial Supervisory Authority's (FSA) role in overseeing companies after the withdrawal of their operating licenses
Winding-Up and Liquidation: Defines the legal regime for the winding-up and liquidation of insurance companies, excluding reinsurers
Insolvency Amendments: Amends Law No. 85/2014 on insolvency prevention and proceedings, aligning it with the new financial recovery procedures
🏛️ Regulatory Authority
The Romanian Financial Supervisory Authority (ASF) is the primary regulatory body overseeing the insurance and reinsurance sectors. Its responsibilities include:
Licensing and supervising insurance and reinsurance companies.
Ensuring compliance with capital, solvency, and reserve requirement.
Implementing corporate governance standard.
Protecting consumer interests and promoting market transparency.
📊 Market Developments
*Drought Insurance Scheme for Farmers: in August 2024, the Romanian government announced plans to implement an insurance system to assist farmers affected by drought. The scheme aims to cover 7 million hectares of farmland, compensating up to 3,000 lei ($671.14) per hectare. This initiative is part of a broader strategy to support the agricultural sector and mitigate the impact of climate-related events.
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