The leadership of the Financial Supervisory Authority (ASF) has continued to collect substantial indemnities, while the repercussions of significant insurance market bankruptcies persist. FACIAS has highlighted that these indemnities, which can reach up to six times the salary of a minister, were allocated during a period when hundreds of thousands of Romanians were impacted by the collapse of two major insurance companies. Presently, there are nearly 200,000 claims yet to be resolved, and the cost of RCA policies has escalated by more than 30% for certain vehicles.
The members of the ASF Council benefit from defiant incomes at a time when the Government has adopted austerity measures through the so-called "train ordinance" that provides for multiple cuts in budget spending. According to an answer sent to FACIAS, the ASF president received a monthly income of more than €21,500 in 2024, equivalent to approximately 1,298,638 lei annually. In addition, the ASF's First Vice-President received 1,199,673 lei per year, equivalent to approximately €20,000 per month. Furthermore, the gross monthly allowances for ASF vice-presidents ranged from RON 85,000 to RON 91,500, while non-executive members of the ASF Council received between RON 37,000 and RON 50,600 per month, equivalent to between €7,400 and €10,100. The ASF derives its revenues from the current tariffs and fees from the regulated entities, which ultimately originate from the policies paid by citizens.
FACIAS has noted that the highest indemnities for ASF members were received in 2022 and 2023, precisely when the insurance market was affected by the bankruptcies of City Insurance and Euroins, without the ASF taking any action to prevent the disaster. In 2022, the president of the ASF received a gross annual income of 1,524,998 lei, equivalent to more than 127,000 lei per month, and in 2023 his compensation increased to 1,591,082 lei, or approximately 132,590 lei per month, which is more than 26,500 euros.
While the ASF leaders continue to accumulate substantial financial resources, the repercussions of the insurance insolvencies are being experienced by the Romanians in their personal finances. As of December 31, 2024, a total of 502,823 payment claims had been registered due to the bankruptcies of the two companies. However, only 60% of these claims have been settled, with payments amounting to 2.6 billion lei.
FACIAS emphasizes that the disappearance of the two primary insurers has precipitated an unparalleled crisis in the MTPL market, accompanied by a precipitous escalation in policy prices, which have increased twofold in certain periods. The financial burden of this crisis has been shouldered exclusively by the public.
In 2023, FACIAS submitted a denunciation to the Public Prosecutor's Office, meticulously detailing how the ASF management, cognizant of the challenges confronting Euroins, elected not to fulfill their legal obligations, namely, "to ensure the protection of policyholders and contribute to maintaining the stability of the insurance market." Despite the ASF's awareness since 2020 that Euroins lacked the necessary financial resources to cover the damages, it merely imposed fines without taking measures to avert the impending bankruptcy.
The "Turn off the waste tap" campaign run by FACIAS aims to draw attention to the colossal waste of public funds and to make the authorities accountable for the efficient and transparent management of public money. We believe that ensuring good stewardship of public resources is essential to strengthen citizens' trust in state institutions and to avoid excessive or unjustified spending.