2024-01-17 13:58:41
Groupama, the new leader of RCA after the bankruptcy of Euroins, reacted on Wednesday to the three fines received last month from the ASF, including for delays in paying RCA claims, specifying that these are operational errors, which represent exceptions in the context of the daily volume of approved claims , which they treat carefully so as not to repeat themselves.
Logo GroupamaFoto: Neydtstock / Dreamstime.com
The officials of the French insurer Groupama say that “errors also happen, mostly human, errors that are the exception in the context of the volumes we work with every day (for example, in a typical month we register more than 16,000 claims notices only in general insurance), exceptions that we treat with due attention and that we address with priority.”
- “The fine announced on Monday by the ASF is intended to draw our attention to these exceptions (for example: the distinct non-reporting of 2 payments related to external damages, over the course of 3 years, or delays in the case of 40 paid compensations, out of over 138,000 analyzed as part of the control) and does not concern a substantive problem, but operational errors, which we treat with great care, in such a way that the risks of them reoccurring decrease considerably,” stated Groupama officials for HotNews.ro, who they do not say whether or not they will contest the fines received in court.
The Financial Supervision Authority (ASF) last month imposed a wave of fines on Groupama Asigurări, the new RCA leader after the Euroins bankruptcy.
The authority issued three fines in the cumulative amount of 340,600 lei for irregularities in the payment of RCA claims, the reporting of external transfers and the inventory of the approved claims reserve, as follows:
1. Fine in the amount of 115,500 lei for:
- non-compliance with the provisions of art. 23 para. (5) from Law no. 129/2019 for the prevention and combating of money laundering and the financing of terrorism, as well as for the modification and completion of some normative acts, with subsequent modifications and additions corroborated with the provisions of art. 12 para. (4) from ASF Regulation no. 13/2019;
- non-compliance with the provisions of art. 24 para. (1) from Law no. 129/2019 in conjunction with the provisions of paragraph 4. (1), art. 21 para. (1) and para. (6) and art. 47 para. (3) and para. (7) from ASF Regulation no. 13/2019;
- non-compliance with the provisions of art. 25 para. (1) from Law no. 129/2019 in conjunction with the provisions of paragraph 13. (1) and of art. 47 para. (3) and para. (7) from ASF Regulation no. 13/2019;
- non-compliance with the provisions of art. 7 para. (3) from Law no. 129/2019 in conjunction with the provisions of art. 35 para. (1) from ASF Regulation no. 13/2019, regarding the obligation to report external transfers to and from accounts, in lei or foreign currency, to N.CPSB;
- non-compliance with the provisions of art. 24 of Law no. 129/2019 in conjunction with the provisions of art. 11 paragraph (5) from ASF Regulation no. 13/2019.
2. Fine in the amount of 100,700 lei for:
- non-compliance with the provisions of art. 21 para. (4) and (5) of Law no. 132/2017 regarding the mandatory car civil liability insurance (RCA).
The two provisions state that the insurer must pay the compensation within 10 days from the date of acceptance of the compensation offer or from the date on which it received a final court decision or the agreement of the dispute resolution entity regarding the amount of compensation that it is obliged to pay pay it.
If the RCA insurer does not fulfill its obligations within the previously stipulated term or fulfills them defectively, including if it unjustifiably reduces the compensation or delays the payment of the compensation, it is obliged to pay penalties of 0.2% per day of delay calculated at the level of the due compensation amount or to the difference in unpaid amount. The payment of the penalties is made together with the payment of the compensation.
3. Fine in the amount of 124,400 lei for:
- non-compliance with the provisions of art. 4 para. (2) lit. d) the last sentence of ASF Regulation no. 2/2016 regarding the application of the principles of corporate governance by the entities authorized, regulated and supervised by the Financial Supervisory Authority, with subsequent amendments and additions, in the sense that, in relation to the requirements provided for in art. 2 para. (2), art. 21 para. (3), art. 25 para. (1), art. 30 para. (1) and para. (4) and art. 31 para. (3) from Norma A.S.F. nr. 32/2015 regarding the organization and performance of the inventory of assets, liabilities, equity and transactions regarding the insurance and reinsurance activity of insurers/reinsurers and insurance/reinsurance brokers, the internal control mechanisms within the company regarding the reserve inventory process of damages awarded were not adequate.
Two insurers have more than 45% of RCA’s revenues, despite Euroins bankruptcy
The degree of concentration in the RCA market remained at a high level in the first half of last year as well, with Groupama and Allianz-Țiriac having accumulated 45.6% of revenues, while Euroins, which was left without a license in March, had 14 .1%, ASF data show.
On the entire market as a whole, on June 30, 2023, the first RCA average was 1,190 lei, up 3% compared to the same semester last year.
On June 30, 2023, the following six insurers authorized by ASF for RCA insurance activities were operating on the insurance market: Allianz-Ţiriac, Asirom VIG, Generali, Grawe, Groupama and Omniasig VIG.
On the RCA market in Romania, two branches operate under the right of establishment: Axeria IARD and Hellas Direct.
The Axeria Iard branch started its activity on the RCA market during the fourth quarter of 2021 and recorded a volume of gross premiums written for RCA of approximately 339 million lei in the first six months of 2023, which means 7.3% of the total premiums gross subscribed for this segment.
Photo source: Neydtstock / Dreamstime.com
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