Finance Minister Darius Valcov on Saturday asked ASF to reassess the RCA system for people younger than 25, as most of them cannot afford to pay tariffs exceeding RON2,000 (EUR445).
Prime Minister Victor Ponta said he fully supports Valcov’s initiative, adding that the current prices for young people’s mandatory car insurance policies are extremely high compared with their financial capacity, as a car should not be considered a luxury good. According to the PM, most of young people cannot afford to pay for expensive RCA policies as they are students or have just started a career.
In December 2014, ASF head Misu Negritoiu said the authority will reassess the situation of the RCA policy prices for youths by February 2015, saying they will constantly monitor the issue throughout 2015.
ABC Asigurari has recently announced it would no longer sell mandatory car insurance policies as of January 1, citing lack of profitable prospects on this segment. The company said economic conditions, lower purchasing power, higher repair prices, lack of predictability of damage claims for injures and death and tougher conditions for reinsurance on the RCA segment show mandatory car insurance policies are not a desirable business line.
Ten insurers sell mandatory car insurance in Romania: Allianz-Tiriac Asigurari, Asirom, Astra, Carpatica Asig, City Insurance, Euroins Romania, Generali Romania, Groupama, Omniasig și Uniqa, according to financial watchdog data.
RCA underwritings in Romania grew 11% in Romania in January-September 2014, to RON1.94 billion.