Earthquake on the insurance market. Fine RECORD received by 10 insurance companies

The Competition Council sanctioned nine insurance companies and the National Union of Insurance and Reinsurance Companies of Romania (UNSAR) for a total amount of fines of 246,739,195, 65 lei (about 53 million euros) for violation of national and European competition rules. coordinating market behaviors to increase the rates of mandatory liability insurance (RCA).

As a result of the investigation, the Competition Authority found that Allianz – Siriac Asigurări SA, Romanian Insurance – Asirom Vienna Insurance Group SA, Asigurări-Reasigurare Company, Astra Asigurari SA, Carpatica Asig SA, Euroins România Asigurări-Reasigurare SA, Generali România Asiatique, 1916 Groupama Asigurări SA, Omniasig Vienna Insurance Group SA and Uniqa Asigurări SA participated in a commercially sensitive exchange of information on the intentions of these companies to increase their rates. This concerted practice, facilitated by UNSAR, resulted in reduced competition in the CAR insurance market between October 2012 and November 2016, as insurance companies have not yet established their tariffs independently, but having acted in a concerted manner in the market, take into account the discussions to increase the wage costs within the association.

"Associations play an important role and it is legitimate for their members to meet and discuss various topics, but they are not obliged to exchange commercially sensitive information, such as current or future prices. Sensitive information reduces uncertainty about competitors' strategies and promotes coordination of market behavior, thereby eliminating competition In a competitive market, companies must compete to provide quality services under favorable conditions, each independently defining its pricing policy according to its own strategy and the cost structure of its activities, "said Bogdan Chiriţoiu, President of the Competition Council.

The fines were applied as follows:

1. Allianz – Siriac Asigurări SA 43 442 939 lei

2. Romanian Insurance – Asirom Vienna Insurance Group Ltd 36,970,408 lei

3. Insurance and Reinsurance Company Astra Asigurări SA 22 037 026 lei

4. Carpatica Asig SA 26 858 238 lei

5. Euroins Romania Insurance-Reinsurance Ltd 6.346.453.60 lei

6. Generali Romania Reinsurance Insurance Ltd 21,445,106 lei

7. Groupama Asigurari SA 35,378,902 lei

8. Omniasig Vienna Insurance Group SA 40 529 090 lei

9. Uniqa Asigurări SA 13,570,597 lei

10. UNSAR 160,436 lei.

In the investigation, Euroins fully recognized the anti-competitive actand provided, as part of the leniency procedure, a series of documents and information that contributed significantly to its review and, as a result, benefited from a reduction in the amount of money. fine.

In the case of Astra and Carpatica, the Competition Council took into account a shorter infringement, namely until the Financial Supervisory Authority (FSA) withdrew its operating license.

"The mandatory auto insurance market has gone through exceptional crisis situations, but in the meantime, the new legislative package has been implemented and has largely eliminated the dysfunctions that have led in recent years to a sharp rise in The fact that some progress has been made in the functioning of the insurance market does not mean that some adjustments are no longer necessary.We will work with the ASF and the government to identify the necessary measures to the harmonization of legislation with European regulations, respectively the consolidation of the market so as not to increase the price of the CAR, "said the President of the Competition Council.

The Competition Authority has been involved in the process of assessing the causes of market imbalances and has made a number of recommendations aimed at improving the functioning of the market. It has been widely used in primary and secondary legislation, including:

– introduce the possibility of direct compensation;

– taking into account the bonus / malus class of the driver's history, and not just the unique driver / vehicle combination;

– use telematics technologies to determine the first RCA;

– give access to the driver's file;

– Declaration of all usual motorists at the time of the publication of the police (for a more precise evaluation of the risks). Following the introduction of this provision, the evolution of the premiums will be different on a case-by-case basis (in some cases, when the risks increase, the premiums will be higher and, in cases where the risk will decrease, the premiums will be lower).

– refine the risk criteria used to calculate the premium rate.

The Competition Authority will work with all actors in the sector so that, in addition to aligning with the EU's provisions, certain issues that still cause concern are removed by incorporating the legislation and other recommendations it has made. formulated, were taken up such as:

– MTPL contracts may be concluded for a period of 6 to 12 months for natural persons and for a period ranging from one month to 12 months, several times for one month, for legal persons (it is not necessary to there is more than one MTPL for a month because many cars in circulation, which do not have a valid RCA because the owners have concluded the police for a very short period – a month – then forgot to renew it

– the introduction of a provision on the development of a code of conduct applicable in the relations between insurance companies and motor vehicle repair companies, jointly with companies of & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Insurance and representative repairers, or their professional organizations; in order to avoid any harm to consumers.