Romanian Insurance Market Update

By CCN 7 months ago

The Romanian insurance market was marked by another bankruptcy in the first half of this year.

Following the bankruptcy of the largest Romanian insurer ASTRA ASIGURARI in 2015 and CITY INSURANCE in 2022 (major MTPL insurer), the supervisory authority has now asked the court to open bankruptcy proceedings against the largest MTPL insurer on the market, EUROINS.

The court approved the regulator request and opened bankruptcy proceedings against the Bulgarian insurer on 9 June 2023, following the withdrawal of Euroins’ operating licence by the supervisory authority in March 2023.

At the time of the opening of bankruptcy proceedings, Euroins had approximately 2.94 million policies, of which 2 million were MTPL policies.

From that date, policyholders have 90 days from the date of the opening of bankruptcy proceedings to recover the premiums they have paid, as the policies will expire on 8 September.

During the same period, injured parties can also apply to the Guarantee Fund to recover damages caused by Euroins policyholders.

Despite the major bankruptcies that have hit the Romanian insurance industry, a new insurer, Eazy Insurance, has been approved by the authorities and will begin operations as soon as possible.

Eazy Insurance is the first insurtech in Romania and will focus on underwriting MTPL policies in the initial phase and will cover the entire general insurance sector in the future.

  press release