​Euroins, RCA’s biggest insurer after the bankruptcy of City Insurance, is challenging the latest fine imposed by the ASF for irregularities in the settlement and payment of claims in court. Head of Euroins Insurance Group (EIG) Kirill Boshov said on Monday that the fine affected 72 cases, while last year the company paid 160,000 cases, and over 1 million cases in the last 6 years.

The last file in which Euroins sued the Financial Supervisory Authority (ASF) was opened on February 15, 2023 TO Bucharest Court of Appeal and aims to “repeal certain administrative acts issued by the CNVM (na ASF) on January 10, 2023.”

• ASF sources informed HotNews.ro about this on Monday what is it about the latest fine of more than 300,000 lei was applied to Euroins for violations in the settlement of compensation claims and their payment.
• The fine, adopted in December 2022 and announced only in January of this year, was actually applied on January 10, 2023, after all procedures were completed, ASF sources said.

What the head of the Euroins group says about the latest fine for ASF

Head of Euroins Insurance Group (EIG) Kyryll Boshov spoke about this latest ASF sanction at a meeting with several journalists on Monday.

• “The last fine from the ASF was for 72 files. Last year we paid 160 thousand files. We process hundreds of cases every day and pay 14,000 to 15,000 cases per month.
• I’ll give you another number. Over the past 6 years, we have paid for over 1 million files. They have now found 72 files. I’ll give you another number. The level of complaints is below 10 complaints per day. This indicator has never been so low.
• 10 complaints a day out of 2.7 million RCA policies means not only that maybe we have a problem with the policies, but maybe you called and no one answered. And of these 10 complaints, almost 5 come from the same place.” This was announced on Monday by the CEO of Euroins Insurance Group (EIG) Kyryll Boshov.

Head of EIG: Euroins pays claims on average 5-10 days after filing a claim

It claims that the number of ongoing lawsuits will exceed 22,000 and that over the past 12 months, 8,500 of the ongoing lawsuits relate to one car service group, which the Bulgarian official did not want to make public.

• “Regarding car services, 3 years ago we had 50 services with which we had direct settlement agreements. Today, we have more than 1000 services with which we conclude direct settlement agreements and work perfectly, without disputes and court proceedings.
• The company pays its claims on average 5-10 days after the claim is submitted. What does it mean? According to Romanian law, after submitting a claim for compensation, the insurer must provide an offer within 30 days, and if the offer is accepted, payment must be made within a maximum of 10 days.
• Assuming you accept the offer on the day you receive it from the insurance company, payment must be made within a maximum of 40 days by law. Euroins pays in 10 days. This is another answer to the question of whether we should worry about the financial stability of the company.” a Bulgarian official said on Monday.

According to him, Euroins Romania currently has more than 2.7 million RCA insureds and more than 1.3 million non-RCA insureds.

The new reinsurance contract with EIG Re assumes 87% of RCA Euroins Romania’s risks

The head of the EIG group said that ASF’s control over Euroins is not over, and further that the Bulgarian group Eurohold, which controls Euroins Romania, disagrees with ASF on previous reinsurance contracts, which are being challenged by the arbitrator of the insurance market in Romania.

• “However, we decided to go ahead and enter into this new reinsurance contract. ASF wants better performance, better solvency and this is our answer. With everything I did, I increased the financial stability of the company. With the increase of capital, with the diversification of the portfolio and the reinsurance contract,” EIG General Director Kyryll Boshov said on Monday.

According to him, EIG RE’s reinsurance contract covers 87% of RCA Euroins Romania’s relevant risks, while the Romanian insurer currently only covers 3% of RCA’s risks. 10% are other taxes, such as the contribution to the Guarantee Fund of the Insured (FGA).

In addition, it claims that 87% of the risks do not remain entirely within EIG RE, which is the reinsurer of the Euroins group, but are transferred in large part to other reinsurers in Germany, the Netherlands and Spain.

A Bulgarian official said he could not name the reinsurers because of certain confidentiality clauses.

We remind you that with full control of the ASF over the company’s solvency, The Euroins company announced the conclusion of a new contract with the reinsurer of the group – EIG Re, on which he transferred a significant part of the risks. Euroins says this would solve the problems caused by the ASF, but it would continue to protect the validity of previous reinsurance contracts challenged by the authority.

Did ASF demand that these indicators be improved because Euroins would not meet the legal requirements?

• “No. The job of every regulator is to ask every company to have better performance and that’s what we’re doing. ASF wants better performance, better solvency and that’s our answer. Everything I’ve done, I’ve been increasing the financial stability of the company With recapitalization, with portfolio diversification and a reinsurance contract,” said Kyryl Boshov.

When asked about the key indicators that determine whether an insurer is financially stable and solvent, namely the Solvency Requirement (SCR) and the Minimum Capital Requirement (MCR), the head of the group claimed that these indicators were and are higher than the legal requirements.

The recently adopted measures provide even more coverage of Euroins Romania’s Minimum Capital Requirements (MCR) and Solvency Requirements (SCR), two key indicators that determine whether an insurer is sound and solvent.

• “Before the reinsurance contract, the SCR was 130% and the MCR was 280%. After the conclusion of this contract, the ESR will be 160%, and the MKR will be 300%,” he said.

The head of EIG claims that he has increased the capital by 100 million lei, but the conclusion of the ASF is delayed

Kyril Bosov also said on Monday that Euroins Romania’s own funds exceed 410 million lei and that the insurer is awaiting approval for a capital increase of 100 million lei, a procedure that would have been initiated on its own initiative last summer. .

“The capital increase started last summer. This is a negotiation process, we have already paid the money, the money is in the account. ASF will approve when it decides.

The company is working perfectly, we are absolutely confident in the financial stability of the company and we want to be sure that no one will try to do something against this company, because we do not see any reason for this”, – Kyrylo. This was announced on Monday by the CEO of Euroins Insurance Group, Boshov.

Criminal complaint and control for ASF ongoing against leader of RCA / Euroins, fined more than 16 million lei in the period 2020-2023

Events announced by Euroins in relation to the new reinsurance contract, the conditions in which the company is under the full control of the Financial Supervisory Authority (ASF) on indicators of solvency and liquidity, information first published by HotNews.ro on February 6, 2023.

There is also a criminal case in the prosecutor’s office against the insurance company, as originally reported Libertatea newspaper.

ASF sent HotNews.ro a list of all fines applied to Euroins in the period 2020-2023, which exceed the value of 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.

With regard to the complaint submitted in February 2022 to the General Prosecutor’s Office, representatives of the ASF stated that they understand not to comment on aspects that are the subject of criminal investigations or cases pending in institutions/bodies or specialized state bodies.

The Prosecutor General’s Office confirmed to HotNews.ro that according to the statement about ASF, criminal proceedings were opened after checking in “Euroins”, without giving other details about his condition.

Eurohold declares a coordinated attack on Euroins Romania, in which ASF employees may have been involved / Goal: seizure of the insurer’s assets

Later, on February 8, 2023the Bulgarian group Eurohold has announced that it has warned all government authorities and international institutions “about a coordinated attack on Euroins Romania, which may have involved several senior and mid-level employees from the management of the Financial Supervisory Authority (ASF), as well as people involved in the City Insurance crisis .

What does the Eurhold group mean:

• “The attack on Euroins Romania may have involved several high- and mid-level employees from the management of the insurance division of the financial supervisory and regulatory body in Romania – the Financial Supervision Authority (ASF), as well as people involved in City Insurance. crisis.
• They carry out these actions, endangering the financial stability of the company, the insurance sector as a whole and the economic stability of Romania. In addition, the actions of some officials of the ASF insurance department jeopardize the company’s good relationship with ASF as an institution and with its senior management.
• Eurohold has already informed a number of competent state and international bodies and institutions about these actions, which are taking the necessary measures.
• The information sent by the company to the competent state and international institutions describes all the intended actions, the actions of the group against Euroins Romania and the potential goal of the campaign, which could be to quickly seize the assets of the insurer, causing a liquidity crisis in the sector with significant consequences.
• This financial destabilization could also affect activity in Bulgaria and have a negative impact on the two countries’ Schengen membership, as well as Bulgaria’s entry into the Eurozone, despite excellent bilateral relations between the two countries.
• The attack on Euroins Romania intensified in the last two weeks when a massive negative campaign was organized through the media, some politicians and some officials of the ASF insurance department.
• This includes actions and measures that grossly violate not only Bulgarian, but also European law. The shareholders of the holding believe that there is a deliberate campaign aimed at destabilizing the financial and insurance market of Romania, as well as the company itself as a leader in this market. “Eurohold” also warned the European Insurance and Occupational Pensions Authority (EIOPA) about these actions, as well as other European bodies. This is stated in the statement of the Bulgarian group.

The group also asks the representatives of the competent public authorities “to ensure a transparent, impartial and internationally recognized audit of the process carried out by some members of the ASF insurance department team, which could otherwise lead to a liquidity crisis and financial instability and general policy”.

VIEW EUROHOLD’S COMMUNICATION HERE.