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July 24, 2024
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Largest Car Insurance Company in Romania Deprived of License by Financial Regulator, Forced to Enter Insolvency

Euroins Romania, the subsidiary of Eurohold Bulgaria, was deprived of its license by Romania’s financial regulator of the market, ASF, which also asked for Euroins to enter insolvency. 2,5 million car drivers insured by the company are affected, as Euroins was Romania’s most significant car insurance provider.

This is the second earthquake in the insurance market in Romania in the last two years. In September 2021, another insurer, City Insurance, went bankrupt. At that moment, Romania’s PM Florin Citu bluntly told the Romanians to get used to bankruptcies in capitalism.

The CEO of Euroins, Tanja Blatnik, was surprised by the decision of the Romanian authorities and issued a press release.

Euroins Romania is surprised by the decision of the Financial Supervisory Authority, which affects millions of Romanians.

The surprise comes from the financial regulator ASF ignoring two ongoing independent audits by the EBRD and the European Regulatory Authority EIOPA.

These audits will end at the end of March, but the ASF ignored them, even though it was informed in detail.

At this moment, we are identifying all legal means in Romania and other jurisdictions to challenge this decision and, implicitly, to defend our clients’ financial interests and ensure the financial stability of the market. The Financial Supervisory Authority did not even officially respond to our report. We reported all the violations of Romanian and European legislation committed by its audit team in the report issued on February 2.

The regulator, without considering any good practice established in the European Union, chose to communicate on Thursday evening by leaking information to the media, before any official communication, instead of establishing a sound professional discussion with the management of Euroins and its international shareholders.

We are taking all necessary legal measures to protect the jobs of our 570 employees, excellent relationships with partners, the interests of our customers, as well as our shareholders’ investments and, ultimately, the stability of the financial market.

Tanja Blatnik, CEO Euroins Romania

Car drivers insured by Euroins are the ones to suffer the most from this perspective. 2,5 million car drivers, to be precise. Does somebody care? It seems not. As former Romania’s PM said, Romanians should get used to bankruptcies in capitalism. Yet, the state promises to offer partial protection to the drivers insured at Euroins.

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