Financiarul

 

Romanian insurers are trying to take advantage of their right to do business in Europe and tap the EU market for clients, Capital magazine writes in its latest issue.
Just as insurers from European countries can sell policies in Romania, Romanian companies too can run business in the EU. There are currently seven Romanian companies authorized to sell policies in one or several European countries. Insurers need to first get the approval of the Insurers Supervisory Commission (CSA) to operate on the European market, then they have to notify the authority in charge in the country where they intend to set up shop. Some took this step at the request of large size clients they already gained on the domestic market, others seek highly developed markets in hope they will offer them significant profits.

 

City Insurance hopes to reap in Italy, in the last quarter of the year, written premiums several times higher than its entire 2007 turnover in Romania. Company director general Nicolae Musat hopes for premiums collected in Italy this year to go as high as three to five million euros. The company, which is a fresh starter, closed partnerships with eight brokerage companies from Italy.
“We will start activity in September. We are currently seeking brokers and insurance agents to work with us,” said the City Insurance head. The company earned a European business passport only for Italy.

 

In 2007, City Insurance – one of the smallest companies on the Romanian market – cashed 1.1 million euros in premiums. Whereas on the local market the insurer bets on travel insurance, its plans for Italy are different. Musat estimates that assets insurance – that is on offer in a package with assistance services and all-risk civil liability policies – will bring in the bulk of premiums.
Other insurers that start overseas business this year do not expect a too high amount of premiums.

 

Euroins boss Bogdan Stan says that this year is rather one of tapping the Hungarian market and therefore they keep their expectations of the 2008 business low. The company entered partnerships with brokers and has already translated its products into Hungarian. Euroins already obtained the CSA approval exclusively for operations in Hungary.
Players on the local market like AIG Romania, Asito Kapital, and EOS Risq use the European passport to follow their clients to other states.

 

AIG Romania has earned the right to close insurance contracts in 25 European markets. “The main reason are the clients who operate in the respective states and who are satisfied with the services they get in Romania and who want to subscribe insurance policies in those states through the office of the same insurance provider. The policies will be arranged by brokers, yet direct policies will also be on offer, just like in Romania,” said AIG Romania Mihnea Tobescu.

 

Asito Kapital too is authorized to close policies in 12 European countries. So far the company did not close any policy overseas, but officials hope to debut the business in 2009. “We readied ourselves for the Lukoil business that is present in all these countries (Ed. Note – the states where the insurer has notified supervisory authorities),” said Asito Kapital director general Marcel Pirciog.
Asito is controlled Lukoil group and very much-relied on insurance contracts with the Russian oil company.
Brokers too follow their clients to European states. For instance, EOS Risq obtained the European passport for Bulgaria, where some of the clients it grants assistance to are already present.