ROMANIA Law and Practice Contributed by: Sergiu-Traian Vasilescu, Luca Dejan, Bogdan Rotaru and Ana-Maria Bută, VD Law Group
focus on market stability, policyholder protec - tion and ethical data use. 8.2 Treatment of Different Types of Insurance In Romania, insurance regulations and practic - es vary by segment. Life insurance and annui - ties, involving long-term obligations, are strictly regulated under Law 237/2015 and Solvency II, ensuring capital adequacy, risk assessment and consumer protection. Insurers use conservative investments, actuarial models and advanced analytics, distributing products via financial advisers and digital platforms. P&C insurance focuses on operational efficiency, fraud detection and claims management, with regulators like ASF emphasizing fair practices and transparency. Insurers leverage real-time data, telematics, and IoT for accurate under - writing and fraud prevention, adopting dynamic pricing and diverse distribution channels. While all sectors follow solvency and consumer pro - tection rules, their regulatory and operational approaches differ based on risk, policy duration and capital strategies. 9. Regtech 9.1 Regulation of Regtech Providers Under Romanian law, regtech providers do not fall under any specific regulatory framework or licensing structure. However, the current regime with respect to data protection, digital identity verification, financial services (including insur - ance), electronic communications, consumer protection, AML and cybersecurity might be potentially applicable to such institutions based on their service offerings. Regtech companies thus have to overcome a convoluted and frag - mented legal landscape, ensuring compliance
across industry-specific laws that were not origi - nally conceived with their business models in mind. They are also subject to the same gen - eral accounting, tax, employment and corporate conditions that apply to other businesses oper - ating in Romania. 9.2 Contractual Terms to Assure Performance and Accuracy Even for key functions like regtech, cloud com - puting, payment processing and other out - sourced parts of a financial firm’s operations, contractual safeguards are imposed on technol - ogy providers in terms of performance, accuracy and compliance, especially concerning the regu - latory aspects. A service level agreement (SLA) generally gov - erns such contracts covering specific perfor - mance metrics like uptime guarantees, transac - tion processing speed and error rates. More often than not, firms expect audit rights to facilitate period assessments of such service providers’ compliance with data security, risk management and operational resilience stand - ards. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Romania’s traditional financial sector is cau - tiously integrating blockchain technology to improve efficiency and security, balancing inno - vation with regulatory compliance. Cross-border payments are a key focus, with institutions pilot - ing blockchain solutions to reduce costs and processing times for international transactions – particularly remittances, a critical market given
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