Prime Minister Nicolae Chuke said on Wednesday before a cabinet meeting that he supports the creation of a state-owned insurance company, but which will also sell RCA, having discussions on this with ASF and CEC Bank.

2 solutions for the creation of a state insurer

• “Establishing a state insurance company is a very good thing. I support and discussed with the CEC. There’s no way it won’t go to RCA. There are 2 options: to create a new company or to withdraw an existing company from the market,” the Prime Minister said on Wednesday.

When asked by HotNews.ro whether it makes sense for this new company not to sell RCA insurance, but given the crisis in this market in the context of the Euroins bankruptcy, the Prime Minister ruled out this option.

• “I, for one, will not agree to start this company without accepting RCA as well. If it comes to market, so be it… It takes about 3 months, as I discussed ASF, because there are stages to go through. The earliest this can be established is in 3 months,” said the prime minister.

On the introduction of maximum RCA prices, he said it would be done for a fixed period and would be discussed with insurers so that they are not exposed to risk.

The government will approve the act after a public discussion, and the project will be considered by the executive power, possibly even on Friday, March 24.

The state is preparing a new insurance player controlled by the CEC and Imprimerie: when the new insurer will be operational

The state wants to create a new insurance company in which CEC Bank will hold more than 99% of the shares and Imprimeria Națională less than 1%, government sources told HotNews.ro on March 7, 2023. When contacted by HotNews.ro, CEC Bank officials confirmed that they have started the procedure to establish the insurance company, which is expected to be operational by the end of the year.

Information of the Ministry of Finance on the state insurer

On March 15, the Ministry of Finance clarified the following to HotNews.ro regarding this topic:

• “The Ministry of Finance, as a shareholder of CEC Bank, understanding the need to support the company’s development needs, as well as to diversify its portfolio of quality products and services, instructed the bank to take the necessary steps to establish CEC Bank as a company in the general insurance sector in accordance with legal provisions.
• The mandate given takes into account the interest of CEC Bank in expanding its activities in the insurance market, taking into account the possibility of such an initiative aimed at diversifying the income base by expanding the activities of CEC Bank into adjacent financial segments, following the model practiced by other competitors in the system, in order to diversify the portfolio of products and services , which can be offered to clients by developing new types of activities in the field of insurance.
• At this stage, CEC Bank is going through the stages of creating an insurance company, the preparation of legal documentation and obtaining the necessary approvals for creation has begun.
• For more detailed information on the creation of an insurance company, we suggest contacting CEC Bank,” the Ministry of Finance said.

Maximum prices for RCA for 6 months – on public discussion

The Ministry of Finance published on Wednesday, March 22, during a public consultation, a draft of the RCA maximum rates for 6 months, a document identical to the document obtained by HotNews.ro on Tuesday evening.

RCA maximum prices will be set by each insurer at the level of its own premium rates applicable on March 1, 2022, and in a situation where those rates are higher than those applicable on March 1, 2023, RCA insurers will apply the lowest premium rate among them, the draft said GD sent to the government and received by HotNews.ro.

• HERE IS HG’S DRAFT ON RCA MAXIMUM BETTING

A draft obtained by HotNews.ro shows that the distribution commission related to RCA contracts is limited to a maximum of 8% of the gross premium collected within 6 months from the date of entry into force of this decision.

Another provision is aimed at covering the costs of temporarily replacing a damaged car.

Therefore, in the case of compensation provided by RCA insurers to cover the costs of temporarily replacing the damaged vehicle with a vehicle of the same class or a lower class, the calculation of the compensation takes into account a rate that cannot exceed the average rental rate published by the Bureau of Vehicle Insurers from Romania .