The Romanian Government approved the decision on capping the third-party liability motor car insurance (RCA) fees at the levels prevailing at the end of February 2023, when the average was lower by 12% compared to the benchmark fees calculated and published by the Financial Supervisory Authority (ASF).

At the same time, legislative changes must be adopted in the next 6 months "to prevent further bankruptcies," said prime minister Nicolae Ciuca during the Executive meeting on April 5, according to Ziarul Financiar.

PM Ciuca said that the Government conditioned the capping of the RCA fees on the quick elaboration of legislative changes to ensure such incidents (insurance firms' collapse) will no longer happen.

ASF, "besides other institutions, [such as] the Competition Council and the other actors in the insurance market," must have an honest, transparent and very clear dialogue on the legislative changes that need to be made, PM Nicolae Ciuca said.

Eurofins is the third major insurance firm that collapses in Romania.

iulian@romania-insider.com

(Photo source: Gov.ro)