The National Association of Insurance and Reinsurance Companies in Romania (UNSAR), founded in 1994, is an independent organisation representing Romania’s insurance sector. Florentina Almajanu, General Manager since 2005, discusses UNSAR’s priorities and current projects.
European Times: What are UNSAR’s main objectives?
Florentina Almajanu: UNSAR protects and represents the interests of Romanian insurance and reinsurance companies, for example in discussions with the government about new legislation, and we promote the growth of the Romanian insurance sector. We now have 17 full member companies and six associate members.
Our membership represents 90% of Romania’s insurance sector. UNSAR is a member of the International Union of Marine Insurance and the European Insurance and Reinsurance Federation. I serve on the Executive Committee of Insurance Europe. UNSAR is committed to promoting EU and international standards in Romania’s insurance market.
European Times: Can you describe the Romanian insurance market today?
Florentina Almajanu: The market includes both general insurance and life insurance. Life insurance accounts for only 20% of the total, and it represents a huge growth opportunity as long as Romanian authorities agree to offer tax incentives. UNSAR proposes the tax incentives to be €400/year for the employer and €400/year for the employee. This would be beneficial for all Romanians. “The star performer” in the Romanian insurance market is motor insurance, which includes motor third party liability (MTPL). A new MTPL -insurance law is currently being discussed and UNSAR sustain introducing a new evaluation concept for moral damages: a table system with points for bodily injuries and death. We developed the table system in partnership with the Romanian Society of Legal Medicine. This is an important project for UNSAR.
European Times: What are some of UNSAR’s other current projects?
Florentina Almajanu: UNSAR is also working to improve legislation for household insurance, which is officially compulsory and covers earthquakes, floods and landslides. This insurance against natural disasters is called PAD. The insured sum is: €20.000 for Type A housing buildings and €10.000 for Type B housing buildings. The insurance premium is €20 for Type A housings and €10 for Type B housings. A type – means the construction whose frame structure is of reinforced concrete, metal or wood, or whose exterior walls are of stone, baked brick, wood or of any other materials resulting from a heat and/or chemical treatment; B type – means the construction whose exterior walls are of un-baked brick or of any other material that has not been exposed to a heat and/or chemical treatment. Only 18% of the population buys this insurance because there are no penalties for not having it. Last year Romania implemented a new regulation that stipulates that a homeowner must have a PAD insurance policy before purchasing a more comprehensive household policy. UNSAR is also developing a project on agricultural insurance.
European Times: What is your personal message about the insurance market in Romania?
Florentina Almajanu: The insurance market is growing but Romanians need to be educated about the value of having insurance. UNSAR is involved in this effort. Romania is solving its problems and is definitely on the right development path.
