The Financial Conduct Authority (ASF) announced on Thursday the first measures being taken into account to lower RCA prices following discussions in recent days with carriers and insurers. Suspending RCA contracts, paying in installments and lowering the price for high-risk policyholders (notably including freight vehicles) are among these possible solutions.

Transporters protestPhoto: Inquam Photos / Octav Ganea

The Financial Supervision Authority (ASF) has held several rounds of discussions and consultations with representatives of carriers in Romania, as well as with representatives of insurance companies, in recent days.

As such, the authority has created a broader framework to analyze and identify concrete and sustainable solutions needed to address the challenges faced by the transport industry related to the RCA policy.

ASF, together with dialogue partners, considered all possible approaches in response to the carriers’ appeal. The Authority reviews the measures that are included in the action plan, which also includes measures that should have been largely adopted by the ASF in the next period.

Among the measures aimed at reducing the financial burden of RCA policyholders, the following can be highlighted:

  • The possibility of suspending the validity of the RCA contract for the period of non-use of the vehicle with the extension of its validity for the period of suspension;
  • Payment of the RCA contribution in installments, regardless of its size, both for individuals and for legal entities, the possibility of payment in installments for potential insured persons;
  • Revising the method of determining the RCA premium rate for contracts of less than 12 months so that there are no longer such large differences between annual and sub-annual policies.

After the discussions, it was also emphasized the need for the Bureau of Vehicle Insurers from Romania (BAAR) to analyze and find a solution regarding the status of the high risk insured.

From this point of view, the analysis mainly considers the identification of proposals intended for freight carriers so that they have access to a balanced premium in the case of compulsory civil liability insurance of vehicle owners, so that the values ​​of the recommended rates are in the range closer to the base rate.

Discussions will continue in the coming days to secure a package of measures that can be implemented immediately to address the concerns raised by the carriers.

Employers’ transport organisations, which have not officially claimed responsibility for the protests, discussed with the ASF on Tuesday new proposals to reduce RCA prices, which will also include a re-analysis from the Bureau of Motor Insurers (BAAR) of the formula for calculating the recommended rate for high-risk policyholders, which installed on vehicles of most transport companies. However, this change has not been approved by BAAR, HotNews.ro reports.

  • Read: New proposals to reduce RCA discussed by ASF carriers not accepted by insurers