Insurance activities in Romania may only be carried out by joint stock companies, mutual companies or subsidiaries of foreign insurers established as Romanian legal entities and authorized by the CNSA to this effect.
Branches of insurers that are foreign legal entities may also carry out insurance activities in Romania, with the authorization of the CNSA.
The insurance agent is an individual or legal entity that is empowered, on the basis of an insurer's authorization, to negotiate or to conclude in the name and on account of the insurer, insurance contracts with third parties, according to the conditions stipulated in the concluded mandate contract, without having the capacity of insurer or insurance broker.
The insurance broker is a Romanian or foreign legal entity authorized under the law by the CNSA, which, on behalf of its clients, negotiates or concludes insurance contracts and performs other services with respect to protection against risks and the regularization of damages.
Companies that carry out insurance activities in Romania must permanently maintain, cumulatively:
- the paid-in share capital, or in case of a mutual company, the paid-in free reserve fund;
- the solvency margin, which represents the variation between the value of the assets and the value of the obligations, and must be higher than the value set under the law.
The paid-in share capital or the paid-in free reserve fund, as the case may be, may not be lower than:
- ROL 7 billion for the activity of general insurance, with the exception of mandatory insurance;
- ROL 14 billion for the activity of general insurance;
- ROL 10 billion for the activity of life insurance;
- a sum of the above-mentioned values, as the case may be, depending on the insurance activities carried out.
The paid-in share capital and the paid-in free reserve fund are periodically upgraded by the CNSA through norms.
The paid in share capital or the paid in free reserve fund, as the same are provided for under the law, must be fully paid in cash, only upon establishment.