The Foundation For The Defense Of Citizens Against State Abuses (FACIAS) has learned of the considerable sums that the Insurance Guarantee Fund is obliged to pay to the victims of the Financial Supervisory Authority's (ASF) failure to manage the bankruptcy of the insurance companies. This failure has resulted in losses of approximately one billion euros for these two companies alone. The delays in granting compensation are considerable, and hundreds of thousands of citizens should receive a total of around 1 billion euros.
The manner in which the ASF has supervised insurance companies in Romania has been severely flawed, resulting in the bankruptcy of companies such as Euroins, City Insurance and Astra, with a significant impact on the Romanian population.
A mere 13% of Euroins policyholders received their money.
This information was obtained by FACIAS from the Insurance Guarantee Fund (FGA), which revealed that by 31 March 2024, 232,219 claims had been registered for Euroins creditors. Of these, only 30,924 have been processed, and an amount of approximately RON 255.2 million has been approved for payment. However, the payment obligations for Euroins amount to an estimated RON 2.25 billion. This means that an extremely small percentage of the claimants, only 13%, have received their money. On a simple calculation, each injured citizen expects 1,300 lei from the FGA.
In the case of City Insurance, the situation is similarly unsatisfactory. As of 31 March 2024, 264,310 claims had been received, yet only 162,143 had been processed. These claims entail an estimated payment obligation of approximately 1.56 billion lei. Furthermore, the FGA has acknowledged that the outstanding payment obligations to City Insurance are estimated at 1.94 billion lei.
In response to the maladministration of insurance companies, FACIAS has initiated a criminal complaint against the FSA, requesting that those responsible be held to account. Furthermore, the foundation is advocating for enhanced supervision and the implementation of measures to prevent a recurrence of such circumstances, which have a detrimental impact on both citizens and the national economy.