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The Financial Supervision Authority (FSA) carried out, during July-September, a control in the company Euroins Romania Asigurare Reasigurare, having as theme the verification of operations and the form of registration in the accounting records of reinsurance operations and technical reserves.
The control action identified a series of deficiencies, in particular with regard to the calculation of technical provisions as of March 31, 2020, as well as the incorrect recording of operations for the recognition of reinsurance commissions.
As a result of the verified aspects, the Board of the Financial Supervision Authority decided to sanction the company, in accordance with the legal provisions, with a fine of 600,000 lei.
At the same time, after the supervision activity carried out on the elements included in the reports presented by the company on June 30, 2020, a series of deficiencies were found in the calculation of technical reserves, in accordance with the requirements of the Solvency legislation. II (Law 237/2015), as well as on the method for determining and communicating the basic equity items that cover the required solvency capital and the minimum mandatory capital.
In accordance with the legal provisions, for the deficiencies found, ASF applied the following measures: sanction the company with a fine of 1.5 million lei; sanction the General Manager and the Executive Director with a fine of 100,000 lei each and withdraw the approvals granted by the FSA.
In addition, the company has the obligation to present to the Financial Superintendency a financing and recovery plan to restore the solvency indicators, in accordance with the provisions of the law. The company must also review the MTPL premium rates, taking into account the deficiencies found, within 90 days from the date of communication of the decision.
The Board of the Financial Supervision Authority also decided to sanction the brokerage company Holfin Insurance Reinsurance Broker SA (formerly Piraeus Insurance Reinsurance Broker Romania SA) with a fine, in the amount of 5,000 lei, and sanction with a fine, in the amount of 5,000 lei, from the Titan Broker de Asigurare SRL brokerage for not ensuring the continuity of the company’s administration, by violating the provisions of article 11 para. (14) of Law no. 236/2018 on insurance distribution with subsequent modifications and completions.
With a warning, after the periodic control carried out, BCR Pensii Societate de Administrare a Fondurilor de Pensii Private SA was sanctioned as administrator of FPAP BCR and FPF BCR Plus.
Euroins Romania will challenge ASF’s decision
Euroins Romania Insurance Reinsurance announces that it has taken note “with surprise” of ASF Romania’s decision and examines all legal options to oppose all relevant institutions in Romania and the European Union.
Publisher: Liviu Cojan
