Euroins, the RCA market leader, announced on Wednesday that it has paid out 1.3 billion lei in claims since the start of the year and says that the established claims reserves will be sufficient to ensure timely payment of compensation claims.

After the ASF announced a day ago that the competition in the RCA market is at its highest level in years, and the market share of the leader Euroins is constantly decreasing, the insurer responded today emphasizing that this trend is in line with its plans to reduce RCA’s market share and diversify its product portfolio.

The insurer claims to have accounted for more than 40% of all RCA reserves in the market.

“With a share in this segment of 31%, reserves are enough to guarantee timely payment of claims. Claims worth 1.3 billion lei have been paid since the beginning of 2022, which is an average of 6.4 million lei per day,” says the insurer.

• “We realize that there are segments of our business where problems always arise and where we can improve our services. However, at the moment, with the help of last year’s successive capital injections from Euroins Group and the European Bank for Reconstruction and Development, which allowed us to keep the company stable and capable of growth, as well as with a large number of customers and partners in the field of brokerage and car service, who chose to trust us during of this period, we can say that our strategy is reliable and has very good results.” – said Tanya Blatnik, CEO of Euroins.

Motor carriers accused Euroins of the fact that the ASF fined a ridiculously small amount for violations in the formation of claims reserves

The insurer says it has chosen not to comment on biased claims made a day ago by a small number of garages compared to the hundreds of garages with which Euroins has long-standing partnerships.

It is about press release sent by the Confederation of Road Carriers (COTAR)which blamed that the ASF had recently imposed a “ridiculously small fine – 422,600 lei equivalent to 20 minutes of RCA sales in one day!”.

It should be noted that certain information on which COTAR carriers base their costs contradict official datasuch as the statement that Euroins will hold 41% of the RCA market and that as of October 2022 Euroins sales will exceed 40% of total RCA policy sales in the market.

In a press release sent a day ago regarding the insurance market for 9 months, ASF notes that Euroins’ market share reached just over 31%, slightly down from mid-year. Euroins’ share is more than 5 percentage points lower than at the end of 2021, when the company controlled more than 35% of the market.

In addition, ASF’s latest report for the first half of 2022 shows that as of June 30, Euroins had a market share of 31.81%, followed by Groupama (20.64%) and Allianz-Țiriac (18.49%).

Recently, “Euroins” was fined for violations in the formation of loss reserves

On the other hand, the ASF recently fined Euroins for violations in the creation of loss reserves, according to carriers COTAR:

• company Euroins a fine of 422,600 lei for violation of the provisions of Art. 5 para. (1), clause (2), clause (6) and para. (7) from norm 38/2015 regarding technical reserves created for insurance activities, the method of their calculation for the purpose of drawing up annual financial statements and a special accounting book of the assets that cover them, in combination with the provisions of art. 3 paragraph (1) of the same regulation.
• The following measures have been applied to the company: conducting an inventory of cases of losses pending in court due to claims of third parties against the insurer by December 31, 2022, and transferring the inventory status and measures taken to the ASF. .
• Tanya Blatnik, as the general director of the company was fined in the amount 86,100 lei for violation of the provisions of Art. 37 par. (7) years b) from Law 237/2015 on authorization and supervision of insurance and reinsurance activities, with further amendments and additions, in combination with the provisions of Art. 5 para. (1) lit. d) point (iv) of Regulation 21/2016, as amended, because the monthly reports sent to the FSA on the situation of disputes pending in the courts did not guarantee that they were complete and correct and true.

Read more: ASF announced new insurance sanctions: what fines were received by Euroins, Asirom, Eurolife, Groupama and two brokers