Bucharest, March 12, 2023 – The future of the labor market in the insurance industry was brought into discussion at the conference “Ensuring the Future of the Labor Market,” which took place on October 12 at the Romanian Senate. The event was organized by the Patronage of the Romanian Insurance Industry (PIAR) and the Federation of Insurance and Banking Unions (FSAB), with the support of the Institute of Financial Studies (ISF), the Romanian Patronage of Insurance-Reinsurance Brokers (PRBAR), the National Union of Insurance and Reinsurance Companies in Romania (UNSAR), and the National Union of Insurance Intermediation and Consultancy Companies (UNSICAR).
The discussions included representatives of authorities, professional associations, partner organizations, and councils, as well as representatives of the academic environment, such as the Bucharest University of Economic Studies and the Romanian Students’ Union, who jointly debated the best solutions to transform an increasingly pressing issue for the future of our country into an opportunity for sustainable development, with concrete and impactful actions.
According to the most recent available data, Romania has an active population of 8.1 million people, of which 7.6 million are employed, and 437,000 are unemployed. This translates into an unemployment rate of 5.4%. The insurance industry employs approximately 30,000 employees and collaborators, with the market capable of offering over 10,000 new jobs annually, thus absorbing a portion of the unemployed workforce.
The event was attended by Mr. Valentin IONESCU, General Director of the General Directorate of Insurance-Reinsurance at the Financial Supervisory Authority and President of the Institute of Financial Studies, who stated:
“To address the labor shortage in the insurance industry, it is necessary to develop this market, and improving the industry can bring benefits to consumers and the economy as a whole. Financial education must be promoted to help consumers understand the benefits and role of insurance in their financial protection.
- Develop a diverse range of insurance products to meet the varied needs of consumers and respond to changes in their behavior.
- Digitalization and technology: Invest in technology to make insurance more accessible and easier to manage for consumers. The application of technologies such as online insurance and telematics can increase efficiency.
- Implement measures to combat fraud in the insurance sector, which can help keep insurance costs at a reasonable level.
- Collaboration with other sectors: Develop partnerships with other sectors, such as banking or healthcare, to offer integrated and personalized insurance products.
- Ensure that insurance companies communicate transparently with clients and provide clear information about their products and services.
- Innovation: Encourage innovation in the insurance industry, such as developing new products or adapting to current market demands.
The development of the insurance market is a complex process that requires the involvement of all stakeholders, including the ASF, patronages, insurance companies, and consumers. A healthy insurance environment can bring significant benefits for the financial protection of the population and the economy as a whole.”
The moderator of this event was Mr. Cătălin CÂMPEANU, Deputy Director of the Institute of Financial Studies, who stated that “The digitalization process of the Institute of Financial Studies has made access to the role of distributor very simple, with the entire registration and evaluation process conducted exclusively online. This initiative has transformed the path to this career into a more accessible process, including from a cost perspective. With an average of over 11,000 new distributors registered annually, this field remains attractive, being a viable option for people seeking employment.”
Additionally, Judith Kis, President of PIAR – Patronage of the Romanian Insurance Industry, stated:
“The insurance industry plays a very important role both economically and as an employer, which is why we take on the responsibility of contributing to the development of solutions to address the labor shortage, encouraging the professional integration of young people and professional retraining. Our industry offers many opportunities for developing a stable career in a flexible and dynamic work environment, and I am confident that together with our social dialogue partners, we will succeed in implementing all the solutions identified together for a sustainable future. By having more employees and collaborators, we can contribute to the goal of a more insured Romania.”
Since its establishment in 2020, PIAR, together with its social dialogue partners, has achieved the signing of a significant agreement, unique at the European level, in the insurance sector, which regulates the principles of remote work for the signatory companies, as well as declarations of principles on sustainability, diversity, non-discrimination, inclusion, and equal opportunities in the workplace.
About the Institute of Financial Studies
The Institute of Financial Studies (ISF), founded by the Financial Supervisory Authority, is a center of excellence in the field of studying specialized markets and conducting financial education programs to ensure the skills, abilities, and knowledge of the staff of financial institutions and the ASF, as well as to increase the level of financial education among consumers of non-banking financial services and products. In the long term, ISF aims to align its activities with European requirements, shifting from knowledge accumulation to skill acquisition and evaluation, providing professional training programs for the non-banking financial sector adapted to new organizational processes driven by legislative requirements, market dynamics, and the European framework, contributing to the maturation of Romania’s non-banking financial market and its capacity to face competition induced by globalization or the effects of economic crises.
About PIAR – Patronage of the Romanian Insurance Industry
The Patronage of the Romanian Insurance Industry – PIAR is a representative sectoral patronage organization, established in 2020 under Law 62/2011 on social dialogue. The patronage was founded at the initiative of Groupama Asigurări, UNIQA Asigurări, UNIQA Asigurări de Viață, and PAID, and currently has 5 members, with the subsequent addition of BRD Asigurări de Viață, representing over 2,500 employees. The main objectives of PIAR are to represent the insurance industry in public dialogue, propose solutions to improve labor market legislation in Romania, and promote best practices in the field.