Romania insurance market

ro

Asigurare

A contractual arrangement whereby an insurer undertakes to compensate the insured for specified losses in exchange for premium payment.

ro

Primă brută subscrisă (PBS)

Total premium income underwritten by an insurer in a given period before deducting reinsurance cessions.

ro

RCA (Răspundere Civilă Auto)

Mandatory insurance covering damage caused by vehicle owners to third parties in road accidents, governed by Law 132/2017.

ro

CASCO

Voluntary motor insurance covering damage to the policyholder's own vehicle regardless of fault, including theft, fire and collision.

ro

Asigurare de viață

Insurance providing a benefit on the death of the insured or upon survival to a specified date; includes term, whole-life and unit-linked products.

ro

Broker de asigurare

A licensed intermediary who acts on behalf of the client to identify and arrange insurance cover from one or more insurers, remunerated by commission.

ro

Agent de asigurare

A natural or legal person authorized to distribute insurance products on behalf of one or more specific insurers.

ro

Polița de asigurare

The written contract between insurer and policyholder that sets out the terms, conditions, coverage, exclusions and premium of the insurance arrangement.

ro

Despăgubire

The amount paid by an insurer to the policyholder or third-party beneficiary upon occurrence of a covered loss event.

ro

Daună (dosar de daună)

A formal request submitted by the insured or an injured party to the insurer for payment of a loss covered by the insurance policy.

ro

Rezerve tehnice

Liabilities set aside by an insurer to cover future claims obligations arising from policies in force, calculated under Solvency II rules.

ro

Solvabilitate II (SCR/MCR)

EU regulatory framework requiring insurers to hold sufficient own funds to absorb unexpected losses; SCR is the target capital level, MCR the absolute minimum.

ro

Reasigurare

An insurance arrangement whereby an insurer transfers part of its risk portfolio to a reinsurer in exchange for a portion of the premiums received.

ro

PAD (Polița de Asigurare împotriva Dezastrelor)

Compulsory insurance for Romanian residential buildings against earthquakes, landslides, and floods, issued through the PAID pool under Law 260/2008.

ro

FGA (Fondul de Garantare a Asiguraților)

A statutory fund that compensates policyholders and injured third parties when a Romanian insurer becomes insolvent, governed by Law 213/2015 as amended in 2025.

ro

ASF (Autoritatea de Supraveghere Financiară)

Romania's integrated regulator for insurance, private pensions and capital markets, established in 2013 by OUG 93/2012.

ro

Libertatea de a presta servicii (FoS)

EU single-market right allowing an EEA-authorized insurer to sell policies directly into Romania from its home state without a local establishment.

ro

Dreptul de stabilire (FoE)

EU single-market right allowing an EEA-authorized insurer to operate in Romania through a branch or permanent presence without requiring a separate ASF authorization.

ro

SAL-FIN

The free out-of-court entity within ASF for resolving disputes between consumers and financial service providers including insurers, established by ASF Regulation 4/2016.

ro

Bonus-Malus

A risk-based premium adjustment system for RCA policies that rewards claim-free driving with lower premiums and penalizes at-fault claims with surcharges, introduced in Romania from January 2010.

How large is the Romanian insurance market and is it growing?

The market reached RON 23.4 billion (EUR 4.7 billion) in gross written premiums in 2024, up 11% year-on-year, and grew further to RON 25.8 billion in 2025. General insurance represents 81% of total premiums, with life insurance at 19%. The market is projected to grow at a CAGR above 8% through 2028.

Who regulates the insurance market in Romania?

The Financial Supervisory Authority (ASF – Autoritatea de Supraveghere Financiară) is the national regulator, established in 2013 by merging three former bodies. ASF authorizes, regulates, and supervises insurers, reinsurers, insurance brokers, and agents. It also oversees private pensions and capital markets.

What is RCA and is it mandatory?

RCA (Răspundere Civilă Auto) is mandatory motor third-party liability insurance, required for all vehicle owners in Romania under Law 132/2017. It covers damage caused to third parties by road accidents. RCA premiums totaled approximately RON 9.94 billion in 2024 (about 42% of all general insurance premiums). Uninsured driving is an administrative offence.

What is the Policyholders' Guarantee Fund (FGA) and what does it cover?

FGA is a statutory fund that compensates policyholders and injured third parties when an insurer becomes insolvent. Following the December 2025 law reform, the previous RON 500,000 individual compensation cap was removed; payouts now align with maximum policy limits. FGA has handled over 600,000 claims totaling billions of lei, primarily from City Insurance and Euroins bankruptcies.

Which are the main distribution channels for insurance in Romania?

Insurance brokers dominate with around 69% of total premiums distributed in 2024, followed by agents (~17%), direct sales by insurer staff (~5%), bancassurance (~6%), and online/digital platforms (~2%). Brokers also dominate general insurance (81.4% intermediation rate) but play a smaller role in life insurance (13.4%), where agents lead.

Can EU insurers operate in Romania without a local licence?

Yes. Under the Solvency II single-licence (passporting) principle, an insurer authorized in any EEA state may operate in Romania either through a branch (Freedom of Establishment) or by selling directly from abroad (Freedom of Services) without a separate ASF authorization, after a notification procedure between home-state and ASF. As of end-2024, 14 branches operated under Freedom of Establishment and multiple FoS operators were active.

How do I file a complaint about my insurer in Romania?

First, file a written complaint directly with the insurer and keep a stamped copy. If unresolved, submit a petition to ASF online at asfromania.ro, by email (office@asfromania.ro), by post, or call 0800.825.627 (free). ASF must respond within 30 days (up to 45 for complex cases). For alternative dispute resolution, contact SAL-FIN (free service within ASF).

What happened to Euroins Romania and its policyholders?

ASF withdrew Euroins Romania's authorization in March 2023. As one of the largest RCA insurers, its collapse left hundreds of thousands of policyholders needing to re-insure urgently. FGA took over compensation of valid claims. By October 2025, FGA had settled over 192,000 Euroins claims worth RON 1.46 billion. The Euroins parent initiated international arbitration against Romania for over EUR 1 billion.

What is PAD insurance and is it mandatory?

PAD (Polița de Asigurare împotriva Dezastrelor) is mandatory home insurance against earthquakes, landslides and floods, managed through PAID (Pool-ul de Asigurare Împotriva Dezastrelor), introduced by Law 260/2008. It is compulsory for all residential building owners in Romania. Minimum coverage is EUR 10,000 for Zone A and EUR 20,000 for Zone B (seismic risk zones).

What are the key insurers operating in Romania?

As of 2024, 25 companies are authorized by ASF. Key non-life insurers include Allianz-Tiriac, Groupama Asigurări, OMNIASIG (VIG), Asirom (VIG), Generali Romania, Grawe Romania and ABC Insurance. Key life insurers include NN Asigurări de Viată, MetLife, and BRD Asigurări de Viată. Additionally, 14 foreign branches operate under Freedom of Establishment.