The Bulgarian company Dallbogg, active on the RCA market in Romania in November 2024, through the European “Freedom of Services – FOS), will be temporarily suspended from the activity of issuing insurance policies, starting July 1, 2025, ASF informs.
Photo inquam Photos / Octav Ganea
According to ASF, the suspension intervened following a decision taken by the Supervisory Authority in Bulgaria, which initially authorized the activity of this insurance company on the European market. Thus, the measure concerns, in addition to Romania, other Member States of the European Union, where the company operates in cross -border regime (eg Poland, Greece, Italy, Spain).
Alarm signal from Romania
Also, the suspension comes in the context of a dialogue initiated by the Financial Supervisory Authority in Romania (ASF) with the Bulgarian Authority and the European Insurance and Occupational Pensions – EIOPA, less than three months after the company's entry into the RCA market, when the Romanian authority has noticed the emergence and aggravation of some problems of the Bulgarian company. The deficiencies reported are circumscribed mainly for the instrumentation of the damage files, such as, for example, the non -observance of the payment terms.
Although the direct supervision competences of the Romanian authority on the Bulgarian company are limited (companies operating on the market based on the FOS regime remain under the supervision of the authority in the country of origin) ASF has transmitted from the first quarter of this year to the Bulgarian authority and has requested an in -depth analysis of the company's practices.
Under the conditions of consolidation and stabilization, lately, the local insurance market, this decision brings to the fore the theme of institutional supervision in a European legal framework which often offers operating freedom without direct local control. In this context, the role of distribution channels, which must provide correct and complete information to the insured future products, is more important, the authority points out.
“We also intervene quickly within the limits of our prerogatives to identify the best solution, which does not involve any costs for Romanian insurance, local guarantee schemes or for the Romanian state in general. We are permanently related to Eiopa and other national authorities in Europe to prevent such situations. We immediately informed the competent authority in Bulgaria and we acted in this European partners. unwanted, which could affect the confidence in the market. I want to convey a clear message to consumers: there are no systemic risks, and the market remains stable” – said Alexandru Petrescu, president of ASF.
Limited effects for consumers
According to the inforctions provided by the ASF, the suspension of the subscription activity on the RCA area does not affect the policies already concluded in Romania, which remain valid. Dallbogg remains responsible for the payment of damages and for complying with the contracts in force.
According to the quoted source, the continuation of the activity of this company on the RCA market could have been leading to developments similar to other problem companies, such as Euroins or City Insurance. Prior to the withdrawal of the operating authorization, the two mentioned companies had a cumulative market share of about 75% of the RCA market. In Romania, Dallbogg has a market share of only 2.7% of the total portfolio of policies in force.
Common European control
ASF has initiated and will carry out, in the next period, a common control together with the Bulgarian and Eiopa authority, which will analyze the company's conduct on the Romanian market. The company has notified the intention to activate on the local insurance market, including the RCA, since 2017, when it has become a member of the Romanian Auto Insurers Office (BAAR).
Also, checks of the way in which the distribution of insurance products was carried out will be carried out, if the requirements of the IDD (EU) 2016/97 directive and the other local regulations in this field have been respected.
“Surveillance is not only a matter of competence, but also of institutional ability to anticipate and prevent. We have chosen to be proactive, to get involved and to have zero tolerance when we have found non -compliant practices. Consumer protection is not negotiable.”also said Alexandru Petrescu.
The insurance market in the first quarter of the year
ASF also informs that the total value of the insurance premiums subscribed for RCA insurances by the companies authorized and regulated by ASF, branches and companies that carry out their activity based on the freedom to provide services (FOS), located, in the first quarter of this year, to about 2.4 billion lei, increasing by 11% compared to the period.
Expressed in annual units (to take into account the different duration of policies, which can be concluded for a period between 1 and 12 months), the number of RCA contracts concluded by all insurance companies that operate on the territory of Romania was about 1.8 million, increasing by 8% compared to the quarter 2024.
Calculated at the level of the entire insurance market, the solvency requirement (SCR) and the minimum capital requirement (MCR) were superunitarian at the end of the first quarter.
