Only one company wants to provide RCA for the Capital Police car park, without increasing prices for 2 years

​A single insurer has shown interest in covering the RCA car park of the Capital Police, in the next 2 years, without increasing the prices during this entire period, contract estimated at over 8.7 million lei (without VAT). Groupama, the insurer that submitted the only offer at the Police auction, explained to HotNews.ro why it believes it will be profitable, even if it will not raise prices during this period.

The General Directorate of Police of the Municipality of Bucharest launched in March of this year an open tender for the conclusion of a 2-year framework agreement for the purchase of compulsory car insurance (RCA/Green Card) for a minimum number of 398 and a maximum of 4,430 vehicles and motorcycle.

In the specifications of this contract estimated at over 8.7 million lei (without VAT), the Capital Police requests that the prices not be increased during the entire period of the framework agreement and be approved by the ASF.

The only insurer that submitted an offer in this auction was Groupama, the leader of the local insurance market, according to data from the Electronic Public Procurement System.

Groupama believes it will make a “reasonable profit” even if it doesn’t raise prices for 2 years

At HotNews.ro’s request, the insurer explained why it believes it will benefit from this contract even if it will not raise prices for 2 years.

• “In the present case, we believe that we have offered sustainable prices that can support the primary goal of our company, which is to develop in a sustainable, profitable way.
• The price offered by Groupama takes into account the increase in the cost of damages during the contractual period, so that a reasonable profit can be ensured”, stated the company officials.

HotNews.ro also asked the insurer if, in order to keep the prices constant in the contract with the Police, it will not instead increase the RCA prices of other clients, individuals and companies, but the company did not provide an answer.

As for the Police’s requirement that the prices be approved by the Financial Supervisory Authority (ASF), the insurer specified that “the RCA rate practiced by Groupama is certified by an independent actuary, approved by the ASF, according to the regulations in force, which we consider meets the requirement from the specification”.

At the time of the launch of this auction, the ASF stated to HotNews.ro that “it does not approve the RCA prices offered by insurers” and that “a possible involvement of the ASF, in this sense, would lead to the opening of the infringement procedure”.

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