Romanian Life Insurers To Provide Prospective Clients With Extra Information

The clients' right to receive additional information before signing a life insurance contract is provided by CSA Order 11/2010, which amends the norms provided by Order 23/2009.

The order says the insurer must conduct an analysis of the client's financial needs, to be used in recommending a financial solution. The analysis should evaluate the client's current financial situation (income, expenses, discretionary income) as well as their long-term financial objectives and their priorities.

If the insurance product matching the client's needs is unit-linked or index-linked, the insurer will determine the client's risk profile. In the case of a unit-linked policy, the client will be provided with a prospectus on the fund in which the insurance premiums will be invested. Order 11/2010 states the basic information that must be included in this prospectus: definitions for important terms, investment policy, minimum recommended investment, fee level and structure etc.

The insurer must also give the client a projection on the contract's detailed evolution: account value, refund value, management fees etc., says the regulator.

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