On 1 September 2014 the European Commission, the European Insurance and Occupational Pensions Authority and the Romanian Financial Supervisory Authority issued a common Statement (the “Statement”) regarding independent third party assessment of the Romanian insurance sector.
The Statement mentions that the assessment will be representative of the Romanian insurance market as it will evaluate insurers representing at least 80% of the market. The main aspects covered by the assessment are those relating to: (i) the assets and liabilities of insurers; (ii) corporate governance; and (iii) individual stress tests.
The standard used for the assessment process is set by Solvency II legislation. It is expected to be useful for both the FSA and the insurers when implementing Solvency II legislation in Romania from 1 January 2016.
It is further mentioned that a Steering Committee will coordinate and supervise the independent third parties who will undertake the assessment. This is scheduled to complete by 30 June 2015.
The full text of the Statement can be found here.
We will provide a more detailed analysis once additional information with regard to the assessment of the Romanian insurance market is available.