Market regulator calls for capital injections at major RO insurers City and Euroins

Romanian non-bank financial markets' regulator ASF claims that it has intensified the monitoring and control of the biggest insurers, Euroins and City Insurance, since 2020, and that risk management simulations show that the most appropriate solution for restoring their prudential indicators would be a capital infusion, Ziarul Financiar reported.

At the end of 2020, Euroins and City Insurance had a cumulative market share of about 75% on the mandatory third party car insurance (CAS) market, according to the annual report of the Financial Supervisory Authority (FSA) for 2020.

"Considering the identified risks, the monitoring and control processes at the level of the two companies have been intensified, and several complementary measures to the sanctions applied for non-compliance with the prudential or conduct requirements were established. Starting from the significant position and the high systemic relevance from the sectoral point of view for these two companies, ASF carried out several simulations regarding the way of risk management and protection of the insured," the ASF report shows.

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