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PRESS RELEASE - ASF analysis of the main markets indicators supervised by the Authority


Bucharest
, 30 March 2018 - Consumer protection is a strategic direction for the Financial Supervisory Authority (ASF). In order to manage this activity as effectively as possible, the ASF carefully monitors three issues that highlight the way in which regulated entities operate in relation to non-bank financial services consumers.

The three major areas undergoing a thorough analysis of the ASF in this regard are: The state of petitions, the period needed for payment and settlement of claim files approved on the RCA market (Civil Liability Insurance for Car Owners), Consumer Specific Safety Indicators for the insurance market.

State of petitions registered in 2017

In 2017, ASF recorded a total of 9,383 petitions, down by 44.54% as compared to 2016. Of the total number of petitions, 85.75% represent petitions related to the insurance/reinsurance market, 11.48% are petitions related to the private pensions market, and 2.77% are petitions related to the financial instruments and investments market.

The drop off in the number of petitions was mainly due to the delisting of 562 issuers, according to Law no. 151/2015, as well as to the withdrawal of SSIFs (Financial Services - Investment Companies) from the capital market; to the withdrawal by the ASF of the operating authorizations for the companies Astra S.A., Carpatica S.A., Forte S.A. and Lig Insurance S.A., as well as to the steps and measures taken by the Public Relations, Petitions and Financial Education Department (DRPPEF) through the Petitions Service, which led to the improvement of insurers' conduct regarding the handling of claim files.

Insurance and reinsurance market

In 2017, a total of 8,046 petitions were received for the insurance and reinsurance market, down by 47.82% as compared to 2016, out of which 6,263 were instrumented, analyzed and solved exclusively per petitioner; the rest were classified and merged in accordance with the provisions of Ordinance no. 27/2002 and the internal procedures of the ASF or have exceeded ASF competence.

From the analysis of the data reported by the insurance companies to ASF, it is found that the 6,263 petitions analyzed and solved exclusively per petitioner represent 0.56% of the total number of claims approved by insurers (1,115,100) and 0.031% of the total number of the insurance contracts in force on 31.12.2017 (20,045,595 contracts).

The aspect most often claimed by petitioners in 2017 was the non-payment/partial payment of compensations/ trade-in-values requested by insured/injured person, in 2,799 cases, representing 44.69% of the total. Among other issues, the non-observance of the contractual conditions/RCA Norms (25.45%), respectively reqests for the recalculation of the value of the damages (5.89%) were included.

In 2017, the largest share of petitions registered in the non-life insurance class was 6,063, representing 96.81% of the total. In the category of non-life insurance, the petitions registered on the RCA Civil Liability Insurance for Car Owners and Green Card insurance category have a significant share, with a number of 4.958 petitions (79.16%), down by 31.41% as compared to the registrations of the year 2016. In the life insurance class, 200 petitions (3.19%) were registered, similar to 2016. The share of petitions concluded in favour of petitioners from the total number of settled petitions was 66.74% (4.180 petitions), out of which 33% were concluded by payment, the requests being valid and having legal framework for settlement. The proportion of petitions settled favourably to petitioners exceeds 69% in the motor insurance class (RCA and CASCO) and 52% in the non-motor and life insurance class. This state of things shows that most of the deficiencies were recorded in the motor insurance segment, mainly in dealing with claim files in terms of compliance with legal and/or contractual provisions.

The private pensions market

For the private pensions sector, 1,077 petitions were received in total, down by 4.27% as compared to 2016. Out of them, 965 petitions were solved/settled exclusively per petitioner, the rest being classified or merged, according to the provisions of the Ordinance no. 27/2002 and ASF internal procedures.

Of the total of 965 unique petitions, 863 (with a share of 89.43% of the total) were both general and individual information requests per case and person, and 102 petitions (10.57 %) required investigation to address the reported issues.

The Market of Financial Instruments and Investments

For the financial instruments sector, a total of 260 petitions were received, down by 30.67% as compared to 2016 registrations. 217 petitions were solved exclusively per petitioner, down by 34.44% as compared to 2016. From the total number of petitions analyzed exclusively, 214 petitions (82.31%) were completed in favour of the petitioners - favourable, legally based solutions were determined for them, to which the DRPPEF had as legal grounds the adequate framework for solving the dispute between the parties, by undertaking the legal steps in this respect.

 

Analysis of the period of payment and settlement of claim files approved to insurers in the fourth quarter of 2017, based on the RCA Civil Liability Insurances for Car Owners

In the fourth quarter of 2017, 77,684 claim files were approved to insurers authorized to carry out the RCA Civil Liability Insurance for Car Owners, with 6.83% more than those approved in the third quarter of 2017.

Most claim files were endorsed by City Insurance S.A. in the fourth quarter of 2017, respectively 23,925 cases, representing 30.80% of the total market, with the company City Insurance S.A. holding, as in the second and third quarters of 2017, the first place in terms of the number of approved claim files. Three insurance companies have accumulated 70.41% of the total number of RCA damage claims filed in the fourth quarter of 2017, namely: City Insurance S.A. (30.80%), Euroins S.A. (21.25%) and Asirom VIG S.A. (18.36%). The other analyzed insurance companies hold less than 8% of the total number of RCA files approved in the fourth quarter of 2017.

From the point of view of the damage claims formulated in the 77,684 claim files, 70,930 files (91.31%) were found to be approved for property damage, 2,133 files (2.75%) for bodily injuries/deaths, and 4.621 files (5.95%) are regress files.

The settlement of the claim files approved during the analyzed period, at the date the reports were communicated to the ASF, is presented below: 63.04% of the total RCA market (48.973 files) are files paid by the insurers up to the reporting date; 36.18% of the total RCA market (28,104 files) are files non-completed at the reporting date; 0.78% of the total RCA market (607 files) are files rejected by insurers.

Analysis has been made of the two indicators that highlight the period of time when insurers pay the damages to the injured persons, respectively they settle the files.

The average payment period for claim files:

  • estimated given the 10 days term from the date of filing of the last document required to establish the liability and the quantification of the damage, requested by the insurer, under the RCA provisions (Article 36 paragraph (5) of CSA Order 14/2011, respectively Article 37 paragraph (4) of RCA Standard 23/2014);
  • estimated given the 10-day deadline after the 30-day deadline provided in Art. 20 par. (1) of the Emergency Ordinance no. 54/2016 subject to the submission of the documents necessary to establish the liability and the quantification of the damage or after the date when the RCA insurer received a final court order or the consent of the dispute settlement entity regarding the amount of compensation it is enforced to pay (art. 20 paragraph (4) of Emergency Ordinance No. 54/2016);
  • estimated given the 10-day term from the date of acceptance of the compensation offer (Article 21 paragraph (4) of Law No. 132/2017).

The average duration for the settlement of the claim files – estimated given the maximum loss settlement term of 3 months from the approval date provided by art. 20 par. (1) of the Emergency Ordinance no. 54/2016 and RCA Norms (Article 36 paragraphs (1) and (2) of CSA Order 14/2011, Article 37 paragraphs (1) and (2) of RCA Norm 23/2014).

For the analysis, 44,634 claim files were considered, which fulfilled the compensation conditions for property damages in the IV quarter of 2017.

Average payment term for claim files

At the level of the RCA market, the analysis of the claim files that met the compensation conditions for property damages in the IV quarter of 2017, in what concerns the manner of compliance with the statutory payment deadline established under the legislation in force, shows the following:  

-          the average duration of payment of claim files, at the level of the RCA market, in the fourth quarter of 2017, is 11.46 days per file;

-          the highest average duration of payment of claim files was recorded by City Insurance S.A., respectively 21.37 days per file;

-          the lowest average duration of payment of claim files was recorded by Uniqa Asigurări S.A., respectively 2.18 days/file;

-          76.24% of the files were paid within the legal term;

-          23.76% of the files were paid later than the legal deadline;

-          the highest percentage of files paid within the legal term was registered by Uniqa Asigurări S.A. (100%), followed by Omniasig VIG S.A. (99.12%), Generali Romania S.A. (97.99%), Allianz - Ţiriac S.A. (96.51%) and Groupama S.A. (93.98%);

-          the lowest percentage of files paid within the legal term was registered by Asirom VIG S.A. and City Insurance S.A., with 57.39% and 57.93%, respectively.

 

Average duration of settlement of paid claim files

At the level of the RCA market, the analysis of the claim files which met the compensation conditions for property damages in the fourth quarter of 2017 shows the following:

- the average duration of settlement of the claim files is 39.00 days/file;

- 42,525 paid files (95.27%) were settled within a period of less than or equal to 3 months;

- the maximum number of days for settling the claim files is 127 days (Asirom VIG S.A.).

 

Compliance indicators for the insurance market

The analysis of indicators specific to the consumer protection activity for the insurance and reinsurance market was conducted on a general level, on aggregate data (non-life and life insurances), using the data of 2017 for the first eight insurance companies that recorded the highest number of petitions to ASF. There were taken into consideration 4,983 petitions analyzed and solved at DRPPEF, petitions communicated only for insurance companies in Romania, authorized by ASF.

The three indicators which were created using internationally-used models are:

  • The indicator petitions/contracts - Ip/contracts - expresses the degree of compliance of a company's products with the financial needs and rights of insurance consumers;
  • The indicator petitions/registered damages - Ip/damages - expresses the degree of fulfilment of the company's obligations in investigating and liquidating the claim files;
  • The indicator approved petitions/registered damages - Iap/damages - expresses the degree of compliance of the solutions adopted in the claim files with the legal/contractual provisions.

Based on the analysis of these indicators, a classification of the supervised entities and/or regulated by the ASF can be achieved in good, medium and low compliance degrees, as follows:

Indicator values below the 100% market benchmark indicate a good degree of compliance. Indicators with values between 100% and 200% indicate an average degree of compliance. Indicators with values above 200% indicate a low degree of compliance.

The smallest percentage of that indicator shows the highest degree of compliance.

 

No.

Insurance companies authorized by ASF for the insurance activity in Romania

Indicator petitions/contracts - Ip/c - 2017

indicator petitions/ damages – Ip/d - 2017

Indicator approved petitions/ damages - Iap/d - 2017

< 100*

good degree of compliance

101 ÷ 200

average degree of compliance

> 200

low degree of compliance

< 100*

good degree of compliance

101 ÷ 200

average degree of compliance

> 200

low degree of compliance

< 100*

good degree of compliance

101 ÷ 200

average degree of compliance

> 200

low degree of compliance

1

Allianz-Tiriac SA

29%

 

 

23%

 

 

20%

 

 

2

Asirom SA

 

 

201%

 

 

336%

 

 

371%

3

City Insurance SA

100%

 

 

 

 

243%

 

 

270%

4

Euroins SA

 

134%

 

 

 

328%

 

 

345%

5

Generali Romania SA

99%

 

 

52%

 

 

35%

 

 

6

Groupama SA

 

114%

 

49%

 

 

33%

 

 

7

Omniasig VIG SA

 

145%

 

68%

 

 

56%

 

 

8

Uniqa Asigurari SA

 

131%

 

74%

 

 

63%

 

 

 

The reports on the state of petitions registered in 2017, on the analysis of the payment period and the settlement of claim files under the RCA policies, as well as on the compliance indicators for the insurance market can be consulted by HERE ( only in Romanian language)