GREECE: Hellas Direct to enter the Romanian market

1 November 2021 — Marina MAGNAVAL
Hellas Direct, one of the largest motor insurance companies in Greece, is preparing to enter the Romanian market, insuranceforum.gr informed.

According to the Romanian website economica.net, Hellas Direct, taking advantage of the gap left behind by cessation of the activities of City Insurance, has already contacted the persons of the insurance market in Romania, in order to expand its activities in local market.

As economica.net mentioned speaking about the Greeks: "A large insurance company is preparing its first steps in the Romanian market, where it sees a great opportunity, in the context of the reluctance of classic insurance companies to expand in online sales and mainly due to the gap left behind by the bankruptcy of City Insurance".

Like French Axeria, after discussions with ASF (Financial Supervisory Authority), Hellas Direct should become a member of the Bureau of Motor Insurers (BAAR), a position it will acquire after analyzing its financial situation and plans for Romania.

The experts believe that eventual entry of Hellas Direct into the Romanian market will contribute to massive growth and acceleration of online sales in motor insurance segment, as it will be the first insurance company in Romania to provide electronic insurance policies.

Also of interest is the way in which Greece will most likely enter Romania. It is an MGA, i.e. Managing General Agent, a system regulated at EU level, by a new Directive that was adopted only 3-4 years ago. Essentially the one who will design an insurance product and sell it is not the insurance company but an intermediary, i.e. a broker or an authorized consultant for such activities.

Source: Economica.net



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