Foreign Direct Investment and the Insurance Market in Romania

The implications of foreign direct investment on the host country represents a very intense researched topic, the results showing a positive impact in some cases and in other cases a negative one. The impact depends largely on the volume of foreign direct investment and the sector where the foreign investment are taking place. Specialty papers show that the development of the insurance market depends largely on the development of the economy and at the same time, the development of an economy depends on the development of the insurance companies. If we assume that the insurance companies are important for the development of the insurance market and the development of the insurance market helps the development of the economy, we can assume that insurance companies can influence growth. In this context, is very important who the insurance companies are. In the Romanian case, the insurance market is a relatively new market, formed after 1990. Among the insurance companies that are operating in the Romanian market a large part of them are foreign companies more precisely foreign direct investment companies. This paper aims to examine the implications of foreign direct investment in the Romanian insurance market.