ADRIAN GURZĂU, THE COMMISSION FOR THE INVESTIGATION OF ABUSE, CORRUPTION AND FOR PETITIONS "The web of connections in the insurance system, greater than in any other"

• The Insurance Oversight Commission (CSA) - called to report before the Parliament, by March

The new management of the Insurance Oversight Commission (CSA) must send to the Parliament, by March 2013, a report concerning the "answers" to the problems uncovered on the insurance market, said Adrian Gurzău, the vice-president of the Commission for the Investigation of Abuse, Corruption and for Petitions.

He said: "We are waiting for the new president of the Insurance Oversight Commission (ed. note: Daniel Tudor) to make an assessment of the insurance market and to provide us with the answers to the charges made against the leaders of the CSA, concerning the term of Mr. Constantin Buzoianu. By March 2013, the CSA must submit to the specialized commissions in the Parliament a report that would include information about the audits made by the CSA at insurance companies, about reinsurance policies, about the state of the PAID and of the mandatory home insurance policies".

The Commission for the Investigation Of Abuse, Corruption And For Petitions has drawn up a report in which it made harsh accusations against the actions which the Insurance Oversight Commission took throughout the term of former chairman Constantin Buzoianu, and following the presentation of the report in the Parliament, Mr. Buzoianu was dismissed in October.

Adrian Gurzău said that the responsibility for what is happening on the insurance market is collective and does not lie exclusively with Mr. Buzoianu, but with the entire board of the CSA.

He said: "The insurance problems did not end with the departure of Mr. Buzoianu. There are systemic problems which need to be dealt with. Things are bad, but we shouldn't alarm people, and professionals must do their job. A precedent has been created and I think that insurers believe that what is happening in the market will last forever. Insurance companies must reassess their position in the market, so they can place their customers' interest first. They must have an attitude which will focus more on their customers' needs. There are invisible ties between the members of the CSA and several insurers. The interest of the companies is to get market share, based on the creation of contractual clauses which would allow them to delay paying the damages.

The web of connections in the insurance system is greater than in any other system".

The vice-president of the Commission for the investigation of abuse, corruption and for petitions has warned that the CSA must become a credible institution just like the National Bank of Romania (NBR).

Also, people shouldn't be going to work for the CSA for the high wages it pays, according to Mr. Gurzău, who said: "The new chairman of the CSA must make his compensation and that of its members public, to ensure transparency. I also expect Mr. Daniel Tudor to cut his compensation at the CSA by 50%, like he has promised before the Commissions of the Parliament".

Contacted by the BURSA newspaper, the representatives of the CSA did not provide us with an answer on the status of the report which they are supposed to present in the Parliament.

Constantin Buzoianu was dismissed in October from the position of chairman of the CSA, with 222 votes "in favor" and 3 votes "against". The parliamentarians of the PDL did not participate in the vote, as they decided to boycott the meeting of the two chambers of the parliament.

He said at the time that the insurance system is faced with "grave problems", which he tried to solve, but that the initiatives of the CSA seriously upset several insurers. Constantin Buzoianu said that over the last few years, a system which favors certain insurers has appeared and developed, which does not comply with the basic regulations in the industry.

"Heaven forbid a major earthquake occurs, because such an event would make the FNI scandal look like a minor accident", he said.

The report of the Commission for the investigation of abuse, corruption and for petitions mentions that there is a suspicion that Constantin Buzoianu was incompatible with his position, due to his son, Sorin Buzoianu, being a shareholder in several insurance companies.

The report also mentions that the Order for the implementation of the norms concerning the form and clauses comprised in the contract for the mandatory insurance of homes against earthquakes, landslides and floods was made in violation of the law.

Furthermore, the document also shows that the CSA did not exert an efficient prudential oversight of the Pool for Insuring Against Natural Disasters (PAID), did not identify solutions for the protection of the policy holders when it comes to the payment of damages and has resorted to preferential treatment in the audit and monitoring of insurers.