More expensive insurances ahead?

Insurance policies might become even more expensive, as the Financial Supervisory Authority (ASF) has set on Monday new obligations for the insurers related to the resolution fund, digi24.ro reports.
Thus, besides the obligations related to the Policyholders Guarantee Fund (FGA), the insurers would have to contribute to the resolution fund, also managed by the FGA.
According to the ASF decision, published in the Official Journal, the insurers would have to contribute monthly with 0.4% to general insurance and with 0.25% for life insurance. In an initial form issued in December 2015, the contribution for general insurance was of 0.25%.
In such circumstances some might wonder if the insurance policies are not going to become even more expensive.
The contribution quotas apply on the volume of the gross premiums earned from direct insurances, until the resolution fund reached RON 50 million, separately on the two insurance categories.
The resolution fund for insurers is a specialised entity within the FGA, aimed at insurers with risk of difficulties, the resolution measures being necessary for public interest.
The insurers also pay contribution quotas to the Policyholders Guarantee Fund by Insurers, a level of 1% for general insurance and 0.4% for life insurance.

ASFcontribution quotasFGAfinancial supervisory authoritygeneral insurancegross premiumsGuarantee Fundinsurance policieslife insurance
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