Bucharest January 20 2023. During the year 2022, the Policyholder Guarantee Fund (PGF/FGA) approved, within the Special Commission, a number of 68,791 payment requests, for all bankrupt insurance companies. The total amount of payments made in 2022 is of 665.6 million LEI. Of the total number of requests analyzed in 2022, 60,686 requests are related to the insurance creditors of the City Insurance SA Insurance-Reinsurance Company, with a paid value of 583.2 million LEI.
Also, of the total payments made during the past year, 47.8 million LEI were paid to the Insurance creditors of the Astra SA Insurance-Reinsurance Company, while 30.6 million LEI were paid to the insurance creditors of Carpatica Asig Company SA. The payments in the case of the two bankrupt insurance companies thus reached the value of 554.8 million LEI for Astra SA Insurance-Reinsurance Company, respectively 498 million lei for Carpatica Asig Company SA.
Starting from November 29, 2021 and until the end of 2022, FGA paid, for the insurance creditors of City Insurance SA, approx. 603 million LEI, for 64,568 payment requests approved by the Special Commission of the FGA, out of a total of 250,692 registered payment requests. In the first phase, FGA registered a number of 260,764 payment requests, but as a result of an internal verification process, a number of 10,072 payment requests were closed as duplicates or attached to other previously registered payment requests.
The year 2022 marked the increase of the contribution rate for general insurance collected by the FGA, from insurance companies, from 1% to 2.5%, an aspect that led to the collection of an average monthly contribution of 24.8 million LEI. The current year brought a new increase in the contribution rate for general insurance from 2.5% to 4%, which leads to the average monthly increase in receipts, up to a forecast level of 46 million LEI.
For the current year, the FGA has proposed the implementation of technical solutions aimed at facilitating the process of settling payment requests submitted by the insurance creditors of the bankrupt companies. The analysis of the payment requests will mainly focus on the requests registered by the insurance creditors of City Insurance SA Insurance-Reinsurance Company, without neglecting the related payment obligations of the other bankrupt insurance companies.
****************** About FGA
Policyholder Guarantee Fund was established as a legal entity under public law according to the Law no. 213/2015 regarding the Policyholders Guarantee Fund.
The fund is an insurance guarantee scheme and aims to protect the insurance creditors from the consequences of an insurer’s insolvency.
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