On Thursday evening, the AFS Council decided to cancel the permit of the Euroins company, which is insolvent according to the law. 2.5 million Romanians are insured with Euroins, “which is EUR 400 million less than the SCR, the Solvency Capital Requirement,” Libertatea reported.

Prime Minister Chuke announced on Wednesday that he had spoken to the head of the ASF about the situation with Euroins, warning that if the company went bankrupt it would affect many people.

“Last week, I discussed with Niko Marku, the president of ASF, that the control at Euroins should be completed and on Thursday, I was informed, the conclusions of the control report will be presented,” Prime Minister Nicolae Chuke said on Wednesday. , before the start of the Government meeting.

Can FGA Survive Another RCA Bankruptcy? How much has he paid to the plaintiffs “Astra”, “Karpatika” and “City Insurance”.

The Policyholder Guarantee Fund (FGA) paid out more than €150m to City Insurance claimants between the end of November 2021 and Friday 10 March 2023, with almost €28m of that in the first 2 months of this year alone, figures provided to the request show HotNews.ro FGA.

Eurohold Group has released new details of the reinsurance contract signed by Euroins Romania with EIG Re, the reinsurer of Euroins Insurance Group (EIG), saying “the total value of the reinsured risk transferred to EIG Re is 1.5 billion lei (over €300 million)”.

In this context, HotNews.ro asked the Insurers’ Guarantee Fund (FGA) to clarify what financial resources it currently has and whether it can support the new bankruptcy of RCA.

Here is the FGA’s response:

“On March 10, 2023, the financial availability of the FHA was 180.3 million lei.

In accordance with Article 5 of Law 213/2015, with the following amendments and additions, the Fund can meet its liquidity needs at the expense of the following resources:

• policyholders’ contributions to the Fund;
• penalties and penalties for late payment of premiums by policyholders;
• sums from the fruiting of Fund funds;
• sums from the collection of claims of the Fund;
• amounts received from legal interest related to loans granted to the Rehabilitation Fund for insurers administered by the Fund;
• amounts from other sources established in accordance with the law;
• loans from credit institutions or mandatory loans by issuing securities of the Fund;
• interest or taxes in connection with any loans or guarantees provided to the insurer, in accordance with the decision, in accordance with the provisions of Art. 59 liters b) from Law No. 246/2015.

In order to fulfill its obligations to insurance creditors, the FGA will apply the provisions of Law No. 213/2015, carrying out a periodic analysis on the evolution of registered payment requests and the relevant provisions, as well as on the basis of constantly updated data and information, evaluations on the evolution of contribution income, as well as legislative changes, the FGA will propose changes to available funds as the situation warrants.

RCA price caps may actually mean higher prices for some drivers / What are the current prices in Bucharest compared to other cities

The RCA price cap imposed by the ASF in the scandal caused by the new reference rate increase could be expensive for many drivers, especially those from cities other than Bucharest, for which there are insurers selling RCA below the non-mandatory reference rates mandatory, but only indicative.

In the midst of the scandal caused by RCA’s new reference rate hikes, the Financial Conduct Authority (ASF) offered very little explanation, contenting itself with publishing a comparative price chart on its website, stating that “these reference rates are not sale prices and that they have grown by 16.28% over the past 6 months.”

To further calm the mood, ASF spokesperson Daniel Apostol briefly stated that: “to protect consumers, ASF is considering capping RCA prices.”

RCA’s price cap would not be the first in Romania. A similar measure was adopted in 2016 by the Cholos government for a period of 6 months. Insurers sued the government, and Romania launched an infringement case with the European Commission.

• Will RCA’s new maximum price be beneficial or not for insurers?

HotNews.ro analyzed the final RCA prices compared to the new reference rates announced by the ASF to see how it might affect policyholders.

Given that the indicative rates announced by the ASF are valid for drivers belonging to the B0 class, HotNews.ro asked insurance brokers to provide some simulations of RCA offers for this category.

This is evidenced by the data in Bucharest, final RCA prices are higher than reference prices both for individuals and legal entities of class B0.

In the rest of the cities, the final RCA prices may be lower or even higher than the base, given that insurers also take into account their own indicators when setting these prices.

In Bucharest, RCA prices are usually higher than in other areas, given that many of the damages are caused by car owners living in the capital.

As you know, since last year, Euroins has reduced its influence on RCA and avoids drivers from Bucharest, in particular, in order not to accumulate further losses, which is why it practices the highest prices for RCA in the capital.

• Read more: RCA price caps could actually mean higher prices for some drivers / What are the current prices in Bucharest compared to other cities

• the news is updated