Romania: ASF is implementing a new methodology in the field of consumer protection

3 October 2016 — Adina TUDOR
ASF - The Financial Supervisory Authority in Romania has developed three indicators that allows it to determine, after analyzing the petitions registered at ASF, the compliance degree of the conduct of the supervised entities.

In applying the methodology, the statistical data related to the first semester of 2016 from the records of the Directorate of Consumer Protection within the Authority were taken into account, with regard to petitions concerning the activity of the insurance companies and the information transmitted to ASF by the insurers through quarterly reports.

The three indicators that have been created from the models used internationally are:
  • The petitions / contracts indicator - Ip / contracts - expresses the compliance degree of the products of a company with the rights and financial needs of the insurance consumers. The lower the values of this indicator, the higher the degree of compliance.
  • The petitions / endorsed damage indicator - Ip / damage - expresses the degree in which the obligations of the company are fulfilled in the activity of investigating and liquidation of the claim files. The lower the values of this indicator, the higher the degree of compliance.
  • The favorable petitions / endorsed damage indicator - Ipf / damage - expresses the compliance degree of the solutions adopted in the claim files with the legal / contractual provisions. The lower the values of this indicator, the higher the degree of compliance.
Based on the analysis of these indicators, a classification of the entities supervised and / or regulated by the ASF can be made, in good, medium and low compliance frameworks of the compliance of the entity's products / services in relation to consumer rights and financial needs, as follows:
  • The values of the indicators below the reference level of the market of 100% means a good degree of compliance;
  • Indicators with values between 100% and 200% show an average degree of compliance;
  • Indicators with values above 200% indicate a low degree of compliance.
The lower the percentage of the indicator, the higher the degree of compliance.

After centralizing and analyzing the indicators for the first ten insurance companies that have registered the most petitions before ASF, companies authorized to conduct an insurance business in Romania, the following situation was observed:

According to the Petitions / contracts indicator:
  • insurance companies with a good degree of compliance - values of the indicator below the level of the reference market of 100% are: Allianz-Tiriac SA (25%), Groupama SA (32%), Generali Romania SA (45%); Uniqa Asigurari SA (82%) and Omniasig VIG SA (85%);
  • insurance companies with an average degree of compliance - values between 100% and 200%: Euroins SA (102%), Carpatica Asig SA (156%) and VIG Asirom SA (168%);
  • insurance companies with a low degree of compliance - values above 200%: City Insurance SA (425%), and Forte Asigurari SA (5324%).
The analysis of the values of the Petitions/ endorsed damage indicator shows the following:
  • insurance companies with a good degree of compliance - values of the indicator below the level of the reference market of 100% are: Allianz-Tiriac SA (17%), Groupama SA (22%), Generali Romania SA (24%); Omniasig VIG SA (58%) and Uniqa Asigurari SA (58%);
  • insurance companies with an average degree of compliance - values between 100% and 200%: Euroins SA (141%);
  • insurance companies with a low degree of compliance - values above 200%: Carpatica Asig SA (224%), Asirom VIG SA (340%), City Insurance SA (549%), and Forte Asigurari SA (2272%);
In terms of the values of the Favorable petitions / damage indicator, the analysis revealed the following:
  • insurance companies with a good degree of compliance - values of the indicator below the level of the reference market of 100% are: Groupama SA (9%), Allianz-Tiriac SA (10%), Generali Romania SA (10%); Omniasig VIG SA (21%) and Uniqa Asigurari SA (42%);
  • insurance companies with an average degree of compliance - values between 100% and 200%: Euroins SA (100%);
  • insurance companies with a low degree of compliance - values above 200%: Carpatica Asig SA (239%), Asirom VIG SA (342%), City Insurance (687%), and Forte Asigurari SA (2592%);

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