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City Insurance: ASF’s decision on opening the financial recovery is illegal

By Anca Bernovici
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The decision of the Financial Supervisory Authority (ASF) by which was ordered the opening of the financial recovery of Societatea de Asigurare – Reasigurare City Insurance SA is illegal and ungrounded, a press release informs.

“All the considerations of this decision does not prove the existence of any of the specified and limited circumstances prescribed by law that would permit such a measure. The text cited in the decision requires that to take such a measure it was necessary for the Authority to found – based on objective data – that, by breaching specific obligations, honoring the obligations to policyholders was jeopardized “, the document reads.

According to City Insurance, ASF’s management ignored the audit’s results of the firm released on April 18, 2016 showing that all the indicators imposed by Solvency II – the law in force as of January 1, 2016 – are met.

“By the mentioned decision, there are required some measures which by themselves are likely to reduce the company’s ability to pay, to the detriment of policyholders. We mention here that by the restoration plan, we are prohibited to sell an entire insurances class – guarantees insurance – and overall, company’s activity volume is limited at 75 percent as in 2015,” the insurance company said.

Also, City Insurance notes that these “restrictive and repressive measures are part of a broader concern of the ASF to drop up to dismantle the activity of insurance / reinsurance companies with Romanian capital, in the explicit favor of the foreign-owned ones.“

 

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Anca Bernovici

Anca Bernovici

I started my way in life with the intention to pursue a teaching career. But, after graduating from the Faculty of Letters – the University of Bucharest in 2004, my first job as a reporter at one of the leading newspapers in Romania changed my perspective. I have specialized in communication and communication campaigns, following the Master's courses at the Faculty of Journalism and Communication Studies (FJSC), attending a BBC Communications scholarship.
I’ve represented several important publications in Romania as business journalist, being accredited in the finance and banking field. In 2015, I had the opportunity to interview the International Monetary Fund (IMF) Mission Chief for Romania, Andrea Schaechter. As business journalist, I also had the opportunity to interview ministers for Economics and Commercial
Affairs offices within different embassies in Romania or officials of large companies investing on the domestic market.
After almost 15 years of journalism, I still want to explore new ways, to inform and stay updated. That’s why The Romania Journal project fits me so well.
Today I describe myself as a passionate about the history of world culture, having a PhD in Hebrew Culture and Civilization, after a scholarship at the University of Haifa International School, as a language addict, an environmental activist, pet lover and traveler.

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