​The Financial Supervision Authority (ASF) is conducting an audit at Euroins, and the results will be made public after its completion, the authority informed HotNews.ro on Monday. There is also a criminal case in the prosecutor’s office against the insurance company.

Continuous control in Euroins: what ASF checks

The ASF’s clarifications related to the control actions currently being carried out at Euroins came after HotNews.ro asked the authorities to clarify whether the largest auto insurance company currently meets the liquidity, solvency and technical reserves indicators for uninterrupted activities and what means of control. and measures imposed by the ASF on that insurer with the largest number of RCA contracts since the City Insurance bankruptcy.

By the way, at the end of December 2022 after some questionsformulated by AUR Senator Sorin Mateescu, the ASF replied to him that “there are currently other on-site control and on-site monitoring actions that are not completed, actions are also aimed at verifying the indicators reported by the company”.

• “Given the measures approved by the FSA and the level of supervision of Euroins, taking into account the market share it occupies, as well as the risks it may represent in the insurance market, the company’s shareholders increased capital last year. 2 years with 246 million lei (authorized capital and share premium).
• Also, on 07.11.2022, Euroins Romania published a new decision of the General Meeting of Shareholders, which approved the increase of capital (share capital and issue premiums) in the amount of 55 million lei, and at the same time, submitted to the ASF the documentation to approve the conversion of the subordinated loan granted by the majority as a shareholder, in the authorized capital”, This is stated in ASF’s response from the Senate.

In public communications, Euroins claims that it has sufficient own funds to cover the solvency capital requirement. The latest data from the insurer showed that at the end of 2021, it had own funds in the amount of 359.5 million lei.

The Solvency Capital Requirement (SCR) coverage is 107.6% and the Minimum Solvency Capital Requirement (MCR) coverage is 230.5%.

Fines over 16 million lei in the period 2020-2023

Returning to the ASF clarifications sent on Monday, February 6, 2023, to HotNews.ro, the authority sent a list of all fines applied to Euroins in the period 2020-2023 that exceed 16 million lei, as well as the detailed reasons for these sanctions.

• WHAT PENALTIES EUROINS RECEIVED IN 2020-2023

If the last fine of more than 300,000 lei, applied last month, was related to the late payment of compensations, then the fines from November and September 2022 relate to the improper establishment of technical reserves, as well as reports that would have been incomplete in the period from February to June 2022 regarding disputes regarding the situation pending before the courts.

What ASF says about the complaint to the prosecutor’s office against Euroins

HotNews.ro asked ASF and point of view regarding Information about freedom under which the FSA would send a criminal notice to the Attorney General’s Office on 21 February 2022 after an audit in 2021 found that the insurer had rejected thousands of claim documents without checking them and without the people whose signatures were on the documents to see them.

Niku Marku, the president of the ASF, should have completed the investigation of the criminal case “registered in file 90/P/2021” by then, writes Libertatea.

What does the government say about this information?

• “The Financial Supervisory Authority (ASF) understands that it will not comment on matters that are the subject of criminal investigations or pending files in the role of institutions/bodies or specialist government bodies.
• Regarding possible criminal actions reported by the criminal investigation bodies of the ASF, we note that this information is excluded from free access to information of public interest, in accordance with the provisions of Art. 12 para. (1) lit. e) and f) from Law No. 544/2001 on free access to information of public interest, as amended.
• At the same time, we would like to note the fact that every time, as a result of supervisory and control measures carried out by the ASF, on the basis of the provided legal prerogatives, suspicions arose regarding a possible violation of the provisions of criminal matters, the ASF informed the competent authorities about the identified aspects.” ASF stated.

What does the prosecutor’s office say?

Libertatea also wrote on Friday, February 3 that the Prosecutor’s Office at the High Court of Cassation confirmed that there is a criminal case in this case, so HotNews.ro asked for details.

The answer sent by the Prosecutor’s Office to HotNews.ro’s requestwhich is identical to the one sent by Libertatea, states that “the requested information cannot be provided”, “given the non-public nature of the procedure during a criminal investigation”.

That is, the prosecutor’s office indirectly confirms the existence of a case opened based on the ASF application, but does not provide any other details.

What Euroins says

Management of EuroinsBut and EIG group they responded on February 2, stating that “all data was provided to ASF in accordance with legal requirements and in good faith. This is regularly reported to ASF, including the reasons for possible processing delays and ongoing remedial measures.”

• “Thanks to the significant reforms and fundamental changes the company has implemented over the past two years, including data management and reporting, Euroins has never been stronger and the long and complex process of change continues. (..)
• The prosecutor’s office or any other institution in Romania has not informed us of any legal proceedings. Therefore, we cannot comment, other than that we will cooperate fully as always and respond to any need for clarification.” Euroins reacted.

In addition, the EIG group also stated that “Euroins, under the supervision of the ASF, carried out an inventory of all open as well as closed disputes until 31 October 2022. The results of this inventory check were submitted to the ASF on January 16.” 2023 together with all adjustments to reserves until December 31, 2022.”