Romania’s Insurance Regulator Extends Deadline For Compulsory Additional RCA Reserve

Romania’s insurance watchdog on Wednesday said it postponed until April 1 a regulation compelling insurers authorized to sell mandatory civil liability car policies, or RCA, to set up and preserve an additional technical reserve for insurance contracts.

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The regulation was initially set to be enforced as of January 1, 2008.

All other provisions of the act still stand, the regulator said.

The additional reserve is to be computed at the end of each month, by applying a 60% percentage to the value of gross subscribed premiums for RCA contracts in the respective month.

“CSA decided to introduce this additional reserve to protect the interest of people whose assets were damaged and to ensure the observance of obligations stipulated by RCA insurances,” the regulator said in a statement last year.

CSA received 16 applications from Romanian insurers that wish to practice RCA in 2008.

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