2022 - Insurance - reinsurance and brokers market sanctions

The Council of the Financial Supervisory Authority adopted during 2022 several decisions sanctioning entities/persons operating in the insurance market for violation of some provisions of the relevant legislation.

 

July 2022

Insurance companies

ABC Asigurări - sanctioning the company with a fine of 314,700 lei for:  

  • the non-separation of the tasks actually performed from the key functions established at company level;
  • inadequate functioning and inadequacy of the company's internal control mechanisms over underwriting activity within the corporate governance system.

Sanctioning the members of the Board of Directors (BoD) with a fine, for each member, in the amount of 11,700 lei for delegating powers of the BoD to the Risk Management Committee:

  • Hristofor Mircea Florin - Chairman of the Board of Directors
  • Pascu Florin - Member of the Board
  • Fundeanu Mihaita Petrus - CA member
  • Podolau Florea - CA member
  • Radu Ioan - CA member
  • Bindileu Elena Silvia - CA member
  • Timofti Emil - CA member

Euroins - Sanctioning with a fine in the amount of 125,400 lei of the general director of the company, Tanja Blatnik, for failure to submit on time the annual financial statements for 2021.

 

Intermediaries

One Insurance Broker - Reinsurance S.R.L. - Sanctioning with a written warning for making changes to the brokerage company's articles of association without the approval of the A.S.F. (i.e. extension of the administrator's mandate for 10 years and change of registered office).

Best AS Broker de Asigurare - Reassurance S.R.L. - Sanctioning with the withdrawal of the operating licence for non-compliance with Article 2 of the A.S.F. Decision no. 19/12.01.2022 (i.e. failure to submit to the A.S.F., within 90 days, the complete documentation on the appointment of a new executive manager).

 

June 2022

  • Groupama Asigurări S.A. - Sanctioning with a written warning for non-compliance with certain provisions of Law 132/2017.
  • Onix Asigurări S.A. - Sanctioned with a written warning for using inappropriate Solvency 2 technical reserve calculation methodologies.
  • Omniasig Vienna Insurance Group S.A. - Sanctioning with a written warning for non-compliance with certain provisions of Law 132/2017.
  • Daw Managment Broker de Asigurare S.R.L. - Sanctioning with a fine in the amount of 75,244 lei, as the audited entity does not ensure logging, monitoring and archiving, in accordance with the specific regulations on the matter, not having complied with the provisions of art. 16 para. (2) letter d) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended.
  • Asigest Broker de Asigurare-Reasigurare S.A. - sanction with a written warning as the company did not respect the legal deadline for submitting to the A.S.F. the proof of registration with the O.N.R.C. of the changes to the administrative management of the brokerage company, approved by the A.S.F.
  • Contract Asig Broker de Asigurare S.R.L. - sanctioning with a written warning as the company has modified the articles of association concerning the change of the registered office without A.S.F. approval.

 

May 2022

  • Euroins România Asigurare Reasigurare S.A. - a fine of 419,900 lei for making early payment of claims and non-payment of late penalties.
  • Mercedes - Benz Insurance Broker S.R.L. - a fine of 5,791 lei, as the brokerage company had not implemented two-factor authentication, in breach of Article 16(2) of the Regulation. (2) letter e) of the A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended.
  • Renomia - SRBA Insurance Broker S.R.L. - sanctioning with a fine in the amount of RON 7,897, as the brokerage company did not have implemented two-factor authentication, in violation of the provisions of Article 16 para. (2) letter e) of the A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended.
  • Millenium Insurance Broker (M.I.B.) S.A. - a fine of RON 9,270, as the company did not ensure compliance with the requirement laid down in Article 16(1)(a) of Regulation (EC) No. (2) letter d) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended, with regard to monitoring to ensure control over user access.
  • Safety Broker de Asigurare S.A. - a fine of 18,477 lei, as the company did not ensure compliance with the requirements laid down in Art. 16 para. (2) letter d) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as subsequently amended and supplemented, regarding the logging, monitoring, in accordance with the specific regulations on the matter, to ensure control over user access, the place from which access takes place and the data accessed, including personal data.
  • Inter Broker de Asigurare S.R.L. sanctioned with a fine in the amount of 117,996 lei, as the brokerage company did not ensure the use of personalised credentials only by authorised/registered staff, in violation of the provisions of Article 16 para. (2) lit. c) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by IT systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended.
  • Amsterdam Broker de Asigurare S.R.L. - sanctioned with a written warning, as the company did not respect the legal deadline for the transmission of changes to the identity document of the brokerage company's administrator.
  • Comisasig Broker de Asigurare S.R.L. - sanctioned with a written warning, as the company amended its articles of association without the approval of the A.S.F.

 

 

April 2022

Asito Kapital S.A. - Sanctioned with a written warning for not keeping proper and orderly records of documents related to guarantee policies.
Amsterdam Broker de Asigurare S.R.L. - Sanctioned with a written warning for failure to comply with the deadline for submitting to the Financial Supervisory Authority the changes to the identity document of the brokerage company's administrator.
Comisasig Broker de Asigurare S.R.L. - Sanctioning with a written warning for amendments to the brokerage company's Memorandum of Association concerning changes to the structure of the associates and the appointment of new administrators without the approval of the Financial Supervisory Authority.

 

March 2022

Euroins România Asigurare Reasigurare S.A. - sanctioning the company with a fine of RON 2,398,700 for registering non-compliant funds and with a cumulative fine of RON 652,100 for failure to submit all documents requested by the inspection team, late payment of MTPL claims, non-payment of penalties, late MTPL claims and undervaluation of the approved damage reserve.
Euroins România Asigurare Reasigurare S.A. - sanctioning Ms Tanja Blatnik, CEO of Euroins România Asigurare Reasigurare S.A., with a fine of 98,500 lei for submitting non-compliant reports.
Groupama Asigurări S.A. - fining the company with a warning and a fine of 62,900 lei for late payment of MTPL claims, non-payment of penalties and late establishment of MTPL claims.
Transilvania Broker de Asigurare S.A. - sanctioning of the company with a written warning for incorrect and unclear information/data in the insurance contract.
Aon România Broker de Asigurare-Reasigurare S.R.L. - sanctioning the company with a fine of 13.076 lei for failure to comply with the legal provisions concerning the professional training of the executive manager, failure to maintain and update its registers.