Posta Romana seeks insolvency of its insurance broker

Romania’s state-owned postal operator Posta Romana has filed court action for insolvency procedures targeting PRBA, its own insurance broker set up in 2014.

The broker has registered losses of RON 4 million in the last five years and receivables of RON 2 million. The company’s representatives made this decision as a result of analysing the legal debt recovery options that PRBA had to register with the company.

In October 2014, the Romanian Post launched its own insurance broker, to implement innovative insurance products as quickly as possible, targeting the traditional customer segment of the national postal operator. Starting May 2015, the Romanian Post offered the possibility to conclude insurance policies in post offices in several cities in the country, aiming at 300 work points across the country.

PRBA’s activity was based on the contribution of authorised postal agents as brokers and number of fixed points in the national post office network. However, the insurance operator recorded debts to the Romanian Post and the attempts to recover failed to fit the PRBA on a positive trend of financial evolution. Thus, as a creditor, the Romanian Post filed a claim in court asking for the insolvency of the insurance brokerage firm.

Mircea Tudosie, general manager of the Romanian Post Office said: “Even if the broker insurance development project did not reach the targets we would have desired from an economic point of view, the Romanian Post will seek in the near future to identify  the right solutions to make our presence felt on the insurance intermediation market. We have traded power in the form of the human factor, basically the most important element in the development on this market segment.”