The insurance represents a financial protection for a person regarding the risks undertaken by the insurance company. In order to perform the risks transfer, the insured person pays an insurance premium to the insurance company so that the latter should be able to pay to the insured person the indemnity in case of occurrence of an insured risk, based on the mutuality principle.
The insurance contract is governed by the principle of consensus, which means that the simple agreement of parties is enough for the valid closing of an insurance contract.
Bancassurance represents a model for the development of the financial sector. It is based on the cooperation between credit institutions, the non-banking financial institutions and the insurance companies, in view of establishing powerful financial poles, by the common use of the infrastructure and the distribution channels.
Thus, both credit institutions and the non-banking financial institutions as well as the insurance companies represent financial brokers which give their clients the opportunity to distribute the monetary utility in time, by creating products packages intended to cover the clients' financial needs.
Subordinated Insurance Agent
The cooperation between credit institutions, that is the non-banking financial institutions and the insurance companies within the bancassurance model represents intermediating the insurance products which are complementary to the products of the credit institutions and the non-banking financial institutions, deployed through their network, under the circumstances envisaged in Law no. 32/2000 and in the norms issued for the appliance of this law.
To this end, the credit institutions and the non-banking financial institutions become subordinated insurance agents of the insurance companies, through their authorization by the Insurance Supervision Commission in compliance with the provisions of law no. 32/2000 (link to Law 32/2000).