​The Confederation of Road Transporters (COTAR) asked the government on Wednesday to reject the extension of the RCA rate cap proposed by the Ministry of Finance unless it is done at the base rate shown by the ASF. “While prices have been seen to rise regardless of the cap, insurance companies will have the option to double prices at the end of the so-called cap period, on the pretext that there has been no rate increase until then,” the carriers said.

The Transport Confederation, which also brings together taxi companies and car services, believes that “any price ceiling set by the authorities, but not at the reference rate calculated and displayed on the ASF website, does not help anyone, it only gives “. it gives the impression that the executive has intervened in the insurance market to protect Romanians” and that “what happens after this period will be a disaster”.

• “Although it looks like an aid offered to Romanians, in fact such a measure does not create any real benefit for insurance consumers in Romania, what was evident during the period when the so-called cap was applied, when the RCA rates charged by insurers increased by tens of percent compared to the previous ones ponds The ASF watched this increase helplessly.
• Moreover, at the end of January, insurers found a way to get as close as possible to the value of the base rate for vehicles over 16 tons, following the figures of a well-known calculation formula.
• So instead of paying rates of 15,000-17,000 lei for B1-B8, we pay around 9,500 lei.
• From March of last year to February of this year, due to the government’s decision on restrictions, insurers charged us these fabulous sums, and for individuals, during the period of restrictions, tariffs increased by 8-10%,” the carriers complain.

What is the RCA Reference Norm: Who it helps and who it doesn’t

Reference rate at RCA this is not the selling price practiced by insurance companies, but only an estimate, calculated for class B0 and for a period of 12 months.

The tariff was calculated by the audit firm KPMG on the basis of a procurement contract initiated by the Financial Supervisory Authority (ASF) based on historical data for the last 5 years up to the reference date, i.e. the period from January 1, 2018 to December 31, 2022.

This means that the bankruptcy of Euroins and the RCA price cap, which is in place until the end of this year, are not taken into account. Details here.

Final price paid under RCA policy it depends on the driver’s damage history, the level of damage, the application of the bonus malus system, the city where the car is registered, and many other factors that are not taken into account when setting RCA base rates.

The RCA reference rate is important for high-risk policyholders.

By law, if you receive at least 3 RCA quotes from insurers with prices 36% higher than the RCA reference rate, this means you are considered a high-risk insured and you can apply to the Bureau of Motor Insurers (BAAR) for a lower price for car insurance.

• read: RCA price cap starting today: How to find out if you’re high risk so you can ask for a lower price

However, the base rate also serves as a benchmark for the rest of the drivers, as strong increases in this rate in recent years have automatically meant higher end RCA prices for millions of drivers.

Carriers have received a reduction in RCA prices assigned by BAAR for trucks over 16 tons: The premium cannot exceed 9,000 lei

Following protests earlier this year, the Financial Conduct Authority (ASF) on 19 January adopted the first measure to reduce RCA prices, which is aimed solely at hauliers: a recommended premium for lorries over 16 tonnes in class B0 (no penalties). or bonuses) will not exceed 9,000 lei.

The reduction was made possible by revising the premium calculation formula recommended for certain high-risk policyholders, i.e. individuals and legal entities owning trucks over 16 tons and belonging to class B0.

• “Thanks to BAAR’s use of this new formula, the maximum value of the recommended premium will not exceed 9,000 lei in class B0.
• The new calculation formula will be applied within two working days after the approval of the ASF, during the period during which the provisions of HG No. 1326/2023 are in force, with subsequent amendments and additions (not HG, which during the next 3 months RCA prices at the values ​​of February 2023, adjusted with a maximum increase of 6.8″)”, ASF reported at the time.

The government wants to extend the RCA price cap until June 30, 2024

Today’s reaction from carriers came after the Ministry of Finance submitted for consultation on Tuesday evening a draft regulation that proposes to extend the price cap on RCA for another 3 months until June 30, 2024.

RCA prices are currently capped at rates applied by insurers on 28 February 2023, indexed to a maximum rate of 6.8%, a situation which will end at the end of March.

The measure, proposed by Finance, is motivated by the need to “combat excessive price increases that may occur suddenly amid imbalances” in the market.

Among the problems that still remain in the RCA market, the Ministry of Finance mentions that only 7 out of 10 cars are insured by RCA, a large number of high-risk policyholders assigned to insurers, and a high degree of market concentration. .

In addition, the Ministry notes that they are also taking into account the fact that a number of changes to the national legislation on RCA insurance are currently in the legislative process, which propose to correct the existing imbalances.

It is likely that the GD project will be on the agenda of the Government meeting on Thursday, March 28.

• Read more: PAPER Government wants RCA prices capped until 30 June 2024 / Reasons: only 7 in 10 cars have insurance