The Insurance Supervision Agency (ASO) has released 30 million euros liquid assets so that insurance companies can use them for current operations in emergency conditions when facing declining sales of insurance policies. With the release of 10% of the provisions, the insurance undertakings receive 1.8 billion denars in liquid assets whose main purpose is to strengthen the support towards the companies in the segment of managing the negative consequences of the coronavirus (COVID 19).

At the same time, ASO allowed premium collection to take place for an additional 60 days, for the sole reason to amortize the impact on the financial result of the insurance undertakings as a result of the expected reduced collection on the basis of insurance premium.

In order to protect the rights and the interests of the insured and to provide quality treatment of claims in conditions of emergency and flexible work operations of insurance undertakings ISA set an additional deadline for processing claims no later than 5 working days from the date of receipt of the claim settlement request. After resolving the case, the undertaking is obliged to notify in writing the claimant stating: the amount of the claim, the possibility and the deadline for submitting a complaint and the deadline for claim payment which must not exceed 14 days from the date of claim liquidation.

In order to ensure the stability of the insurance sector, but also to protect the insured, ISA has made a decision that these emergency conditions, and slow liquidation and reporting of claims shall not affect the valuation of technical provisions.

The pandemic and the state of emergency in the country as well as all over the world, have a significant impact on people’s daily lives, as well as day-to-day operations of the financial services sector and the real economy. Although, at present, the severity of the consequences of the epidemic on the domestic economy can not be predicted with certainty, what is certain is that all segments of the financial services sector will face difficulties and pressure upon their work operationsfor for some time .

The Insurance Supervision Agency aims to provide relief and continuity in the operation of the insurance sector, while protecting the interests and rights of the insured, the public interest, as well as ensuring the stability of the insurance sector.

The Insurance Supervision Agency is in constant intensive communication with all entities in the insurance sector and constantly monitors and assesses the solvency and liquidity of each individual entity.

In this context, we would like to inform the public that the Council of Experts of the Agency at its last session adopted a new set of measures in order to ensure the continuity of the operation in the insurance sector.

Taking into account the state of emergency in the country, as well as the need for financial regulators in these moments to show flexibility and adaptability of the supervisory rules and standards, the Agency has made a decision and has amended three regulations.

The adopted amendments give additional regulatory space in the operation of insurance undertakings, which will inevitably have not only a positive effect on the end user of the insurance in the segment of payment dynamics of premium liabilities, but also in the segment of timely and objective claim payment.

More precisely, the changes refer to greater flexibility of insurance undertakings in their operations, thus enabling reduction of the current burden of citizens and companies in dealing with the negative effects of the pandemic.

Regulatory changes are aimed at temporary relief in:


  1. The Rulebook on types and characteristics of the assets covering the technical provisions and the assets covering the mathematical provisions and on the detailed placement and limitation of such investments, where up to 31.12.2020, 10% of the assets for covering the technical provisions should be from the due and undue receivables up to 30 days. Namely, by releasing 10% of the provisions, ISA provides an increase in the liquidity of the insurance undertakings by 30 million euros.


  1. The Rulebook on the method for valuation of the items from the balance sheet and preparation of the business balance, where the correction of the premium collection is allowed to be moved for an additional 60 days until 31.12.2020. The purpose of the amendment is to amortize the impact on the financial result of the insurance undertakings as a result of the reduced collection on the basis of insurance premium.


Namely, with the additional 60 days, ISA shall balance the balance sheets of the insurance undertakings after the pandemic shock, in order for them to continue to function normally after the end of the state of emergency.


  1. The Rulebook on the minimum content of the records and the manner of reporting, reserving and claims settlement by the insurance undertakings where it is allowed postponement of claim reporting for 5 days as long as the state of emergency lasts.


Namely, with this measure, ASO enables the insurance undertakings given the state of emergency and the new organizational schemes, to have an additional period for claim processing which will be a great benefit for the insured.


4.The decision on the manner of valuiation of the claims provision and / or reinsurance during the state of emergency, which defines that in the valuation of the technical provisions for the second and third quarter of 2020, despite the slow claim settlement / claim report in the event of an emergency, the technical provision valuation should not be affected.

The purpose of this change is to ensure the stability of the insurance sector, and also protect the insured, by realistically defining the provisions of the insurance undertakings.

The Insurance Supervision Agency will continue to monitor the impact of the coronavirus pandemic on the stability and the operations of the entities it supervises and is prepared to properly adjust its policies and respond in a timely manner in accordance with its competencies, for the main purpose to protect the public interest and contribute to the stability of the sector.