BCR launches own insurance company

The Romanian insurance market will have another player by the end of the year, BCR Asigurari (BCR Insurance) company, supported by the banking leader.

BCR Asigurari will be launched soon, after having been heralded ever since the first half of the year, Cornel Cojocaru, BCR spokesperson, told Ziarul Financiar, declining to provide information about the company’s share capital.

Banca Comerciala Romana (Romanian Commercial Bank) holds a 22% stake in Omniasig insurance company, “inherited” from the late Bancorex, and a 20% stake in Asiban.

“Our position as shareholder in the two companies does not conflict with the establishment of BCR Asigurari,” Cornel Cojocaru maintained.

According to Cojocaru, there is enough room for more players on the insurance market, while risk limitation through diversification is part of the basic management directions. BCR currently accepts customer insurance from 13-14 insurance companies.

“There is a chance for diversification,” Cojocaru says. According to the bank’s spokesperson, BCR has no intention of waiving its stakes in Asiban and Omniasig, deeming them as a sound investment. Rumour had it this summer that BCR was planning to give up its Omniasig stake.

The insurance market is becoming increasingly tempting for banks. Meanwhile, many insurance companies could use the access to the banking subsidiary networks, for the distribution of their products.

Plans also focus on complex products, such as bancassurance, which combine insurance policy characteristics with traits of banking products.

It is however certain that legislation does not allow banks to run insurance brokerage activities on their own, leading them to team up with insurance companies. Such partnerships became more apparent this year.

The only bancassurance products on the market belong to BRD and Commercial Union on one hand and ING Bank and Nederlanden on the other.