Insurers holding a “European passport” post 4.7m-euro business

Romanian subsidiaries of European insurers that sell policies based on the right of establishment, posted business worth 4.7 million euros (19.5 million RON) in the first half of the year, according to the Insurance Supervisory Commission (CSA). Since Romania joined the EU, EU-based insurance companies can sell policies on the Romanian market either based on the right of establishment (“European passport”) or on the free movement of services, by notifying the CSA and the supervisory authorities in the country of origin, without setting up an insurance company under the Romanian legislation. Nine branches of European insurers operate on the Romanian market based on the right of establishment: Coface (Austria), Porsche Versicherungs (Austria), Cardif Assurance Vie (France), Cardif Assurances Risques Divers (France), Euler Hermes Kreditversicherungs (Germany), QBE Insurance (UK), AIG Europe (France), Medicover (Sweden) and CIG (Hungary). The latter three did not sell any policy during the mentioned period, according to CSA. The business of insurers that came onto the Romanian market based on the European passport accounts for a very low share of the overall market, which amounted to 2.4 billion euros last year.