Banks, tourism agencies, car dealers, non-banking financial institutions, and rent-a-car firms will be able to sell insurance policies under conditions similar to those of insurance brokers, according to a new bill launched by the Financial Supervisory Authority (ASF).

The draft project, which is known under the acronym IDD, has been launched into public debate. The main players in the local insurance market can send their comments to ASF until May 5.

If the law enters into force, there will be two types of intermediaries, namely main and secondary. Insurance brokers will remain main intermediaries, but commercial banks will join them.

Lenders will be able to sell any types of insurances. This will substantially increase distribution channels and will increase competition in the market. Banks will need to get the approval of ASF to sell car insurance policies. Meanwhile, insurance brokers will be able to sell credits and other banking products.

The secondary intermediaries will include agencies, as well as a new category called “secondary auxiliaries”, including tourism agencies, car dealers and rent-a-car firms. Tourism agencies will be able to sell travel insurance as well as health insurance, without the approval of ASF if the policy is issued for a period bellow three months. The car dealers will be allowed to sell car insurance (RCA and Casco) without ASF approval, if the premium for one year is under EUR 600.

editor@romania-insider.com