EUROINS Romania was fined by ASF with more than EUR 100 k. FGA assigned as temporary administrator
The Board of the Romanian Financial Supervisory Authority (ASF) decided to amend EUROINS Romania with RON 500,000 (more than EUR 100,000), as a result of violation of some provisions of MTPL Law as the procedures for solving the MTPL claim files, deficiencies regarding the internal control mechanisms at the company level, irregularities regarding the establishment of technical reserves and data quality, as the market authority annunce in a statement.
"As a result, in respect of mentioned violated provisions, ASF forced the company to take a series of measures from operational point of view meant to lead to remediation, within a maximum of six months", wrote 1asig.ro.
More than that, The Insurance Guarantee Fund (FGA) has beend appointed temporary administrator, until the appointment of the new Supervisory Board, which is in the process of authorisation, Romanian insurance portal 1asig wrote that "the role of the FGA will be to oversee the current procedures and operaions carried out by the company during the period".
Euroins Romania stated that it "welcomes the public clarifications that ASF made: « ASF stresses that Euroins meets the prudential indicators, both in terms of minimum capital requirements (MCR) and in terms of solvency capital requirements (SCR - Solvency Capital Requirement) », as well as the fact that the company is not under special administration, as wrongly alleged."
At the beginning of February, ASF fined EUROINS Romania with RON 100,000, for not complying with the legal provisions in respect of claims. The company also received a fine of RON 50,000 in September 2019 for the late payment settlement of MTPL laim files to consumers.
At the end of 2019, EUROINS Romania Asigurare Reasigurare reported a 27% increase in sales, totaling GWP of about RON 1.28 billion.
Author: Andrei Victor
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