The new law on insurance or reinsurance activity comes into force on January 1, 2023. The document provides that the minimum capital requirement (own capital) for insurance companies will be raised gradually, over a period of five years. Also, during four years the given companies will have to comply with the normative restrictions concerning the assets allowed for covering technical reserves and the minimum capital requirement, IPN reports.
The law on insurance or reinsurance activity regulates the registration, authorization, licensing rules and insurance or reinsurance activity and intermediation activity. It defines the prudential requirements for the participants in the insurance market and the rules for the supervision of insurance or reinsurance companies.
This way, as from January 1, 2023, the law on insurance (No. 407/2006) will be abrogated. The regulations set down by the surveillance authority based on law No. 407/2006 will be further applied if they do not run counter to the law on insurance or reinsurance activity, until their nullity is declared explicitly, the National Commission for Financial Markets said in a press release.
The law on insurance or reinsurance activity was adopted by Parliament on April 7, 2022.
