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.

The post Largest Car Insurance Company in Romania Deprived of License by Financial Regulator, Forced to Enter Insolvency appeared first on Valahia.News.

Precisely, 45% of the Romanian drivers are insured at City Insurance. From Friday, the insurer has no license, as it failed to show it has the necessary capital to survive on the market. This lead to insolvency, and the Romanian insurance regulator is preparing to ask for the bankruptcy of City Insurance.

According to sources, the insolvency came as the operator has paid so far EUR 18 million in interest for fake loans supposedly offered by its main shareholder, a Swiss company.

Asked about the situation, Romania’s PM Florin Citu declared:

We have to get used for the companies to go bankrupt in capitalism. It’s a natural thing.

Florin Citu on the insolvency of City Insurance

This controversial statement of Romanias’ PM doesn’t solve the problem, though, nor does it help the 3 million Romanians insured at City. Yes, companies go bankrupt, but Romanians got used to it for the last 30 years or so, since the Romanian Revolution.

Where was the regulator so far? How come it didn’t see the problems at City Insurance until now when it is already too late? These are the questions to be answered by a country’s PM, but, as it happens in Romania, no answers will come, no problems will be solved.

The best thing to do now for all the people insured at City is to change their insurer. At least until the second one goes bankrupt. That’s a fact. Until then, insurance specialists talk about the imminent growth of the cost for insurances in Romania. It’s brilliant, especially with all the prices skyrocketing.

Meanwhile, for a complete understanding of the mess in the country, in this context, Romania’s President Klaus Iohannis urges Romanians to go play golf. He says it’s a sport for the masses, not at all expensive or exclusivist.

Somebody stop Romania. For sure some people want to get off!

The post Romania’s PM on City Insurance Insolvency: ‘Romanians Should Get Used to Bankruptcies in Capitalism’ appeared first on Valahia.News.