Insurance Association in Romania wants to notify the EC on capping RCA rates

The National Association of Insurance and Reinsurance Companies in Romania (UNSAR) considers that capping the rates for the mandatory car insurance (RCA) policies infringes the EU law. Following the Government Decision that approves the maximum RCA tariffs for the next six months, UNSAR wants to notify the European Commission, according to its press release. Capping the RCA prices “violates a basic principle laid down by the Constitution, that of a free market”. The association has also argued that the measures were taken by invoking a crisis in the market, and not based on a “solid financial analysis” of the transport market in Romania. UNSAR also claims that the local insurers’ losses will increase in the following years due to the distortions this measure will cause in the market. According to UNSAR, foreign insurers have brought EUR 90 million to capitalize their local subsidiaries in the last nine months as the losses in the insurance sector amounted to some EUR 700 million in nine years. Romanian Government approves decision on maximum RCA tariffs editor@romania-insider.com