Press release on the discussions held with representatives of carriers and insurance companies to identify specific solutions

Bucharest, 18 January 2024 – The Financial Supervisory Authority (ASF) has held several rounds of discussions and consultations with representatives of Romanian carriers and insurance companies over the last few days.

The Authority has thus created a broader framework for analysis and the identification of specific and sustainable solutions to the problems faced by the transport industry in relation to MTPL policies.

Together with the dialogue partners, ASF has considered all possible approaches in response to carriers’ requests. The Authority is considering measures which are included in an action plan which also includes activities which, to a large extent, were to be adopted by ASF in the immediate future.

Among the measures designed to reduce the financial burden on MTPL policyholders are:

• The possibility of suspending the effects of the MTPL contract for as long as the vehicle is not in use, with its validity extended by the period during which it was suspended;
• Payment of the MTPL premium in instalments, irrespective of its level, for both individuals and companies, with the option of payment in instalments being the responsibility of the potential insured;
• Reviewing the way in which the MTPL premium rate is set for contracts concluded for periods of less than 12 months, so that there are no longer such large differences between annual and sub-annual policies.

The discussions also highlighted the need for the Romanian Motor Insurers’ Bureau (BAAR) to analyse and find solutions regarding the status of the high-risk insured. From this perspective, the analysis is mainly aimed at identifying proposals for freight carriers to have access to a balanced premium rate for compulsory motor third party liability insurance, so that the recommended rates are in a range closer to the reference rate.

Discussions will continue over the coming days with a view to consolidating a package of measures that can be implemented immediately to address the issues raised by carriers' representatives.