The explosion of the RCA, the joy of the state

The explanation given by the carriers is that the state has no interest in controlling this insurance market, because higher prices for Romanians means more money in the institutions’ budgets, and the capping was done incorrectly, intentionally, being ineffective as a measure. The Confederation of Authorized Operators and Transporters from Romania (COTAR) proposed to the Parliament and the Government a solution for lowering RCA prices, but it was not taken into account.

A simple calculation based on the RCA policy paid by a driver for the same car, from 2021 to date, shows how prices have risen year-on-year, with a small but insignificant rebound during the cap period, as then to reach doubling, for the year 2025.

“We have a car that, during the analyzed period, from 2021 to 2025, had the same owner, with the same domicile and the same damage history – maximum bonus class – B8. In 2021 he paid RCA for 12 months 358 lei, in 2022 he paid 727 lei, in 2023 he paid 630 lei, in 2024 he paid 673 lei and in 2025, 1,240 lei. The policy in question is not for a legal entity, transporter or from Bucharest/Ilfov, but for an individual from Mediaș, a retired insured aged over 65, without accidents This alarming increase of almost 300% in five years – with a doubling only in the last year – occurred without a valid economic justification, in the absence of damages or changes in the profile of the insured. The government cannot close its eyes indefinitely to the complicity of the ASF in the abuses of insurers. The responsibility lies with ASF and Mr. Sorin Mititelu. ASF, the institution that should protect consumers and ensure compliance with insurance legislation, demonstrated a passive attitude”, say COTAR representatives, accusing ASF of having only made a few superficial checks on insurance companies that did not respect price caps , a measure ordered by the Government in the last two years.

The transporters from COTAR hold directly responsible the vice-president of ASF, Sorin Mititelu, who leads the insurance sector within the Authority, for not taking concrete measures to eliminate these abuses.

Insurers set what prices they wanted

To all this is added the fact that the drafting of the text of the normative act that imposed the ceiling was done in such a way as to give the insurance companies the freedom to circumvent the provision, because a maximum value of the policy that each insurer practiced was taken into account , without asking, in advance, a list of prices from each one separately.

The transporters accuse the state authorities of having intentionally slipped this error, in order to let the insurers continue to increase the prices, and the explanation would be simple: the same institutions live off the money that Romanians pay extra for the mandatory insurance policies.

Moreover, insurance companies have not even respected the provisions of the RCA Law in recent years. “In the example we gave we are discussing a policy with the maximum bonus-malus class, B8. According to the RCA law, the insurer is obliged to give a 50% discount for this class, which emphasizes that the insured has not had any accidents in the last 8 years. However, instead of the insured being rewarded, the RCA tariff for this policy doubled in just one year, in 2022”, explained Vasile Ștefănescu, president of COTAR, for Jurnalul.

The RCA price was to be maintained in 2023 and 2024 during the cap period at the April 2023 level, but price lists from insurance companies were not requested to verify that the cap was met.

It is requested that the insurances be transferred to Finance

COTAR proposed, since last year, when the management of the ASF changed, that the Authority or at least the insurance sector should come under the Ministry of Finance, in order to have real control over the market and to stop the series of abuses by insurance companies, through the practice of unreasonably increased tariffs.

Carriers are also dismissing insurers’ arguments about rising prices in the auto repair market. “The labor paid by insurers to car services represents only 5% of their receipts, so the claim that damages are the cause of the increase in rates is unfounded. Over the past two years, total claims have increased by just 12%, based on inflation, while RCA rates have increased by 200%. ASF spends approximately 40 million euros per year from Romanian money, money from which ASF salaries are paid, amounting to tens of thousands of euros, but also company cars, drivers, premiums, etc. Who approves the ASF’s revenue and expenditure budget? They too. They have every interest in the insurers charging the highest rates, because they benefit from a percentage of the total value of the policies sold”, says Ștefănescu.

Carriers from COTAR presented this situation in the last three years, several times, based on ASF reports, but the insurers disputed their evidence and arguments each time, further motivating the need to increase RCA prices based on the increase in the price of car repairs.

The President of COTAR presented the situation in the same way in the Social Dialogue Commission from the Ministry of Finance, when the extension of the RCA price ceiling was discussed. “In the many meetings we have held, we have consistently emphasized that capping RCA tariffs is only a temporary solution that does not address the underlying problems of this complex market. Unfortunately, the current situation confirms our fears. Rather than bringing stability, capping fares creates major imbalances, affecting consumers, carriers and the insurance industry equally. The example of pensioners who registered increases of over 100% in RCA policies, even with the maximum bonus B8, is a clear proof of the failure of these measures”, explained Ștefănescu.