Romania: ASF fined small insurer ASIMED and withdrawed the company's operating license

14 January 2021 — Andrei Victor
The Financial Supervision Authority (ASF) fined local non-life insurer ASIMED RON 50,000 (about EUR 10 k), withdrew the operating license, declared the insolvency and asked for the bankruptcy of the insurer, wrote here.

The mentioned publication wrote that ASF found almost 40 deviations from the insurance legislation, -including the lack of executive management since April 2017, the inadequacy of eligible own funds to cover the Minimum Capital Requirement (MCR) on 31 December 2018 and 31 December 2019, or the underestimation of the UPR.

Each violation is accompanied by a sanction, namely a written warning or a fine, "for the almost 40 violations of the insurance law, the fines totaling RON 1.09 million. According to the law, the fines are not cumulated, ASF applying ASIMED the highest fine, RON 50,000 respectively".

The company's GWP totaled RON 723,395 (~EUR 145 k) in 2019 while its net profit amounted to RON 646,663 (~EUR 130 k).

The Insured Guarantee Fund (FGA) took note of the publication of the ASF Decision no. 1493/2020, in the Official Gazette of Romania no. 14 / 07.01.2021, "which ordered the sanctioning with a fine and the withdrawal of the operating authorization of Societatea Asigurare Reasigurare ASIMED - S.A. and the ascertainment of the insolvency of the company, following that the Financial Supervisory Authority will request, in Court, to open the bankruptcy procedure against the insurer", the institution mentioned on its website here.

On its website, ASIMED announces that "starting with 18.12.2020, the company no longer concludes insurance policies, according to ASF Decision no. 1493 of 17.12.2020."

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