Insurance regulator warns brokers

The Insurance Supervisory Commission (CSA, in Romanian) announced last month that they would pay particular attention to the premium settlement process from the outside brokers to the insurance companies, as the breach of this obligation represents an offense. Even more, penalties can end up with the withdrawal of the operation license.

CSA warning was accompanied by a harsh penalty – the temporary activity prohibition imposed to ELI Insurances, Insurance – Reinsurance Broker. According to a release from CSA, the penalty was imposed for several shortcomings. One of the most important was the fact that the brokerage company had not paid the insurance premiums many insurers received from the sale of policies on their behalf.  By now, CSA has authorized about 450 companies on the brokerage market in Romania. Insurance premiums mediated by those reached about 130 million euros in the first three months of this year, with 4% more than the same period in 2008. Basically, the brokers’ business has come to represent about 23% of the total insurance market.