• IT&C, the naval industry, the pharmaceutical industry or consultancy – areas where professional liability will increase

Bucharest, November 29, 2021: Leader Team Broker, a key player on the Romanian insurance market, specialized in risk management, estimates that the professional liability insurance market will grow in Romania in the coming years, at an average annual rate of 20-30% , as the labor market and the segment of services provided by Romanians for employers abroad diversify. While the professional liability insurance market is currently dominated by IT&C services, in the coming years it is expected that the professional liability segment will be further accessed by service providers in industries such as maritime, food supplement manufacturers, financial industry service providers, recruitment companies, business or media consultancy & entertainment.

„The professional liability insurance market has been developing locally for several years now and the analyzes we have carried out indicate an annual growth rate in the future of 20-30% per year. This trend is especially natural in the context in which, from one year to the next, the number of individuals or Romanian companies working or providing services for companies abroad increases. In states with a developed economy and, implicitly, with a culture of insurance, the professional liability policy is a necessity. In Romania we do not have this habit of insuring a risk that occurred during the exercise of the profession and, perhaps more importantly, these are insufficiently regulated occupations for which it is impossible to insure at a local insurance company” explained Alexandra Elena Durbacă, Executive Director at Leader Team Broker.

The company official explained that a job that is not included in the Occupations Code, managed by the Ministry of Labor, makes it impossible for Romanian insurers to create and sell a specific policy that covers professional risk. Moreover, even if that profession is found in the Nomenclature of Occupations, professional liability cannot be invoked and insured if it does not have a unanimously recognized code of professional and ethical conduct at the industry level.

“Such a situation is encountered in the case of the psychologist profession, for example. Although the profession is officially recognized as an occupation, it is difficult to create a professional liability insurance by Romanian insurance companies because there is no Code of Professional Conduct. This code is the reference that can be used to distinguish between risk and harm. Another example would be professional liability for a marine surveiller. It is a job performed by a person or company that ensures that the products transported by a merchant ship are up to contracted standards. Because in Romania this profession is not officially recognized, it is necessary to use a policy created by an international company, it does not exist in the portfolio of Romanian insurers“, added the CEO of Leader Team Broker.

In order to cover specific needs in less regulated industries or for trades not yet officially recognized in Romania, Leader Team Broker develops specific products collaborating with international insurers and responds to any request for professional liability regardless of whether it is received from Romania or abroad.

“The experience of the last years shows us that in the future, the demand for professional liability policies will increase in Romania in industries such as naval – commercial ships, media & entertainment – event organizers, health – clinicians or manufacturers of food supplements, financial-banking industry- complementary service providers, cash facilitators, HR-labor recruitment services, entrepreneurial or business consultancy “, declared Răzvan Rusu, founder of Leader Team Broker.

As a result of the insurance products brought by Leader Team Broker in Romania, starting from the new trend, in 2021 the company provides insurance products for companies from 16 European countries.

Leader Team Broker has a portfolio of over 700 insurance solutions and products offered by over 30 national and international insurers (Lloyds market). Among the newest products included in the portfolio is Amazon’s contractual liability insurance.