​The ASF board decided on Thursday evening to revoke the authorization of Euroins and start bankruptcy proceedings for RCA leader after 2 days of debate during which the insurer’s management was initially recalled, industry sources told HotNews.ro on Friday. Effects? The government would have to borrow from the FGA to pay claims and cap RCA prices, a scenario in which some insurers would pull out of the market and raise prices further.

Initially, the ASF Council proposed to suspend the management of Euroins and take over the management of the Insured Guarantee Fund (FGA), as Profit.ro reported last night, but after 2 days of debate, the ASF On Thursday evening at 18:30 the management decided to withdraw the company’s authorization and recognize it insolvent, sources close to the process told HotNews.ro on Friday.

The information that the ASF will immediately withdraw the authorization and demand the bankruptcy of Euroins was announced by the Prime Minister on Thursday evening in Libertateate.

• “The reasons for this direct decision, without going through a period of interim management, as happened in the case of the other big bankruptcies of Astra, Carpatica and City, are that those in the ASF were afraid to allow Euroins to operate without capital, given that the control report it would be established that the MCR would be €250 million and the Minimum Solvency Requirement (SCR) would require around €400 million,” Cited sources informed HotNews.ro about this.

The ASF will make an official announcement in the near future, during today, as soon as it officially informs Euroins of the decisions made, HotNews.ro sources say.

Consequences of the bankruptcy of “Euroins”: what measures is the Government preparing so that the prices of RKA for consumers do not rise even more

The Insurance Guaranty Fund (FGA) does not have enough resources to deal with the situation at Euroins, given that it is already paying for the bankruptcies of Astra, Karpatyka and City Insurance.

If a court decides that Euroins is insolvent, the RCA policies will automatically terminate after 3 months, but in the meantime they may incur losses.

Where does the money for damages come from? Some insurers are threatening to pull out of the RCA

HotNews.ro sources say that in order to resolve the situation, the government will lend FGA and limit RCA prices, a measure already taken into account by the ASF, which is being seriously worked on, according to some government sources.

The problem is that capping RCA prices would mean many drivers would pay more than they do now, and such a measure could trigger a crackdown by the European Commission, as has happened in the past.

In addition, according to HotNews.ro sources, some important RCA insurers, such as Groupama and Axeria, have already informed the ASF in writing that if RCA prices are capped, they will withdraw from this market. A similar measure would be considered by the VIG group, which sells RCA in Romania through Asirom and Omniasig.

Groupama has 20% of RCA’s premium revenue at the end of February, VIG has 10% and Axeria has 7%. euros – 33%. Together they make up 70% of the RCA market, so the question is who will sell more RCA?

Of course, as has happened with every high-profile RCA bankruptcy, consumer prices will rise even more.

Each time, the contribution of the insurance companies that sell RCA to the Policyholders’ Guarantee Fund increases, and this is transferred to the final prices to the policyholders.

It is updated