Prices for mandatory car insurance in Romania to be based on statistics

Romania’s Financial Supervisory Authority ASF has approved the amendment to the regulation on the mandatory car insurance RCA. The insurers will now be obliged to correlate the evolution of the RCA tariffs with the level of damage for each client segment. The insurance companies are required to submit electronically to the Financial Authority the methods and the assumptions used for the calculation of premiums. They also need to send the database used for these calculations. Insurance companies are not allowed to use increase or correction tools, as well as any other tools that adjust the tariffs, without statistics to back up these changes. The RCA insurers also need to use sufficient historical data in order to perform a calculation that is statistically relevant. editor@romania-insider.com