Strengthening Insurance Supervision in Romania in Accordance with the EU Acquis Phare Project
Duration: October 2000 – November 2001.
Background
Supervisory Office for Insurance and Reinsurance Activity (SOIRA), the supervisory authority in Romania was established in 1992 as a department in the Ministry of Finance. For updating the insurance legal framework in accordance with the international prudential supervision requirements and the EU acquis, during 1996-1997 SOIRA drafted with British Know How Fund support in the new law on insurance undertakings and insurance supervision.
Beneficiary Institution
Beneficiary Institution of the Project was SOIRA, at that time within the Ministry of Finance. According to plans, SOIRA would cease to exist and its staff and responsibilities would be transferred to the newly created Insurance Supervision Commission (ISC), who would become the direct beneficiary of the project.
Main Project Objectivities
1. To strengthen the capacity of the supervision authority (ISC) to enforce its insurance supervision functions, at standards required by the EU acquis.
2. To establish and make fully operational the independent insurance Supervision Commission (ISC).
3. To harmonise the Romanian insurance sector in the line with the best international practice in insurance supervision and with the provisions of the relevant EU acquis.
4. To harmonise Romanian insurance legislation with that of the European Union.
Main Project Purpose
1. Establish the Insurance Supervision Commission (ISC): define the staffing requirements, prepare internal operations’ manuals and procedures for ISC; adequately train the staff of ISC; develop a strategy to network with relevant international organisations etc.
2. Diagnose in detail the degree of harmonisation of the Romanian legal and regulatory framework with the EU aquis for insurance supervision.
3. Prepare plan and provide of actuarial courses and guidelines for the insurance undertakings.
Expected results
1. Institution Building
Medium-term action plan for the development of ISC (for its first 5 years establishment). Internal regulations and guidelines for ISC (organisational chart, job descriptions, internal operational manuals and procedures). Detailed curriculum and training manuals finalised for 7 key training topics for ISC staff. Membership of ISC in the key international organisations of insurance supervision. 2. Investment support for ISC:Hardware equipment.
Software programs implemented (for insurance monitoring and consolidation).
Communication equipment.
3. Support for EU accession:
Diagnosis of the degree of harmonisation of the Romanian legal and regulatory framework with the EU acquis for the insurance sector.
Action plan of ISC for full implementation of the EU acquis in insurance.
Evaluation of further assistance needs for the gradual implementation of the requirements of the EU acquis in insurance.
Key regulations for insurance supervision harmonised with the relevant of the EU acquis and based on the newly issued Law on insurance supervision.
4. Assistance to market players:
Training plans and curricula for training the personnel of the insurance undertakings.
Training materials and manuals for key courses for the insurance undertakings.
Actuarial courses for the insurance undertakings and ISC staff.
Workshops for market players on key topics for their adequate operations and for their relations with ISC and with their clients.
Guidelines for insurance companies on reporting requirements, preparation of the annual reports, etc.