Romania: The Bucharest Court opens bankruptcy proceedings against City Insurance
After several postponements in the last four months, the Bucharest Court admitted on February 9th, 2022, the request by the Romanian Financial Supervisory Authority (ASF) to open bankruptcy proceedings against the country's leading insurer City Insurance, informed 1asig.ro.
Thus, according to the legislation, the policies will be valid for a maximum of 90 days, respectively until May 11, 2022. However, until then, most of the policies of CITY Insurance customers will expire.
Recently, FSA officials stated for 1asig.ro that most of the remaining MTPL policies issued by CITY Insurance will expire in the coming months (February, March, April, May).
"The Financial Supervisory Authority (ASF) has taken note of the decision ruled today by the Court of Bucharest, which admits ASF's request and orders the opening of bankruptcy proceedings against the insurance and reinsurance company City Insurance S.A.
The court ruling confirms the correctness of the decision to withdraw the operating license for City Insurance taken by the Financial Supervisory Authority at the end of the specific control activity.
By withdrawing the operating license of this insurer, the Authority acted to rebalance the RCA market, which had been affected by unlawful practices causing significant imbalances.
As a reminder, the mission of ASF is to oversee the stability of the non-bank financial markets and to ensure compliance with the law by all companies in all the markets it supervises", as ASF officials mentioned in a statement.
ASF has revoked the City Insurance's license and asked for the start of bankruptcy procedures on September 17, 2021.
Author: Andrei Victor
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