The Foundation for the Defense of the Citizen Against State Abuses (FACIAS), as an active part of civil society, cannot remain indifferent to the disastrous situation in the compulsory motor insurance market, in the context of the bankruptcy of Euroins. Thus, as a result of the unpermitted passivity of the Financial Supervisory Authority (ASF), an institution of the Romanian state, paid precisely to prevent these situations that have consequences in the increase in the prices of RCA, FACIAS will file a criminal complaint against the ASF management.
Euroins is the third insurance company to go bankrupt after City Insurance and Astra, and the ASF management is always incapable of preventing such situations. The bankruptcy of City Insurance resulted in a tripling of the price of RCA policies and the recent bankruptcy of Euroins will probably have the same kind of effect. Despite this, the ASF officials who could have stopped these companies before the amount of claims exceeded their revenues are making post-disaster statements and nonchalantly claiming that they did their job.
So we can speak of gross negligence in service given the following certain information:
- ASF found as early as September 2020 that Euroins did not hold eligible own funds to cover SCR and MCR as well as that it had improperly built up the premium reserve, the endorsed claims reserve and the non-advised claims reserve.
- It also found in December 2021 that Euroins did not have constituted national regime and solvency reserves 2 and that it did not hold own funds required to cover SCR, the latter being the subject of a finding also in March 2022.
- The ASF was content to simply make a finding and issue fines, but did not intervene in time to halt the company's activities, even though the end was foreseeable and a recovery plan was not feasible.