Globalization on the Romanian insurance market in terms of competition

This article proposes an analysis of the globalization process impact on the Romanian insurance industry in the last decade, after accession of Romania to the European Union, in terms of competition. One of the main lines of change caused by globalization includes changes in the legislative framework, which are considered to be forced by globalization. The introduction of Solvency II directive to the beginning of 2016 year to ensure for all European insurers, the integration, globalization and the unitary functioning on the same insurance market and the recent measures taken by several Romanian insurance undertakings to strengthen their financial position could be consider a major step to further encourage the improvement of market competition and better policyholder protection. In the last ten years, the Romanian insurance sector has been faced with changes such as mergers & acquisitions and bankruptcies that have modified the local landscape of the industry, so the majority of active companies in the market are now owned by the biggest financial groups worldwide. The results of the research reveal that the Romanian insurance market is characterised by a high concentration and competition level and in spite of the present risks, it is still attractive for foreign investors.