​The leadership of the Financial Supervisory Authority (ASF), led by Nico Markou, will be heard in Parliament from 12.00 in the bankruptcy case of Euroins, the leader of the RCA with almost 2.8 million customers. This is the fourth major bankruptcy in the last 8 years, after Astra, Carpatica and City Insurance, which are under the “supervision” of this body, whose bosses have a monthly income of more than 12,000 euros.

In a joint meeting with the Committee on Economy, Industry and Services and the Committee on Budget, Finance, Banking and Capital Markets, “relevant aspects related to the base rates for RCA policies published by the ASF on March 7, the impact on the insurance market will be discussed and with regard to consumers, the status of controls and measures taken by the ASF regarding the legal norms in force in the insurance market, especially the actions taken against the company Euroins Romania Asigurare-Reasigurare SA and the status of indemnities/compensatory payments made by the Insurance Guarantee Fund as a result of the bankruptcy of such insurers, as Astra SA, Carpatica Asig SA and City Insurance SA”.

The Financial Conduct Authority (ASF) announced it would submit a proposal to the Treasury on Monday to set rates for RCA policies at last March’s level, as well as another proposal aimed at scrapping the 1% tax on insurance companies.

HotNews.ro transmits Livetext the main statements of the parliamentary hearings:

Euroins is RCA’s fourth major bankruptcy in the last 8 years, after Astra, Carpatica and City

After 2 years of inspections and fines ranging from 34,000 lei to more than 3.5 million lei levied by the ASF, the Romanian insurance market faced another major bankruptcy of Euroins – the largest RCA insurer with almost 2.8 million customers.

ASF defends itself by saying that between February 2020 and January 2023 it imposed total fines of more than 16 million lei on this insurer, measures that are considered too lenient and late compared to the financial problems known after the bankruptcy of City Insurance in 2021.

Euroins, on the other hand, accuses ASF of a hostile takeover and says it will pursue all legal means in Romania and other jurisdictions to challenge ASF’s decision.

On Friday, the authority decided to withdraw its operating license and file for bankruptcy of Euroins, which it said needed 2.19 billion lei by the end of September 2022 to restore its Solvency Capital Requirements (SCR) and 1 .75 billion lei to cover the minimum capital requirement (MCR).

Euroins is the fourth major bankruptcy of RCA, which occurred in the last 8 years in the insurance sector under the “close supervision” of the State Financial Supervision Authority (ASF), after Astra, Carpatica, City Insurance.

If the Bulgarian group Eurohold is behind Euroins, the other three were controlled by Romanian businessmen with political connections, they left behind tens of thousands of people who could not return only a part of the demanded compensation.

Each time, the remaining insurers had to pay even more to the Insurance Guaranty Fund (FGA), which takes over the bankrupt company each time, and to take over the insurance of the bankrupt companies’ customers, all of which caused prices to explode.

Rates from March 2022 in RCA, for 6 months

Valentin Ionescu, director general of the FSA’s directorate general for insurance, told Agerpres on Sunday that after an analysis with the main insurance companies, it was decided to apply the rates from March 2022 for six months in order not to destabilize the situation. market, but the decision and the moment of application of this measure will be determined by the Government.

“We are not discussing the ceiling. As I mentioned, we are not discussing the ceiling. We are talking about reporting on the rate practices that insurance companies had in March 2022. This analysis was also carried out with the major insurance companies, given the fact that the RCA rate increased after City exited the market. In order not to destabilize the market for the next six months, it was basically agreed that this should be such a proposal,” said the director of ASF.

• ASF wants RCA prices at the level of last March. And if the rates are lower now

• Major insurance bankruptcies. How Romanians ended up paying several times more for RCA

• Approximately 2.8 million Romanians with RCA in Euroins. What customers and applicants should do