2. 64 insurance undertakings consisting of: 27 insurance companies 15 branch offices 22 mutuals and mutual-type undertakings 33 MABISZ-member undertakings 25 companies 6 branch offices 2 mutuals MTPL 15 insurance companies, 1 branch 4,2 million MTPL policies 654 insurance undertakings based in other member states registered by the Hungarian National Bank in the framework of cross-border services (FOS)

3. ASTRA opened it’s H branch office in 2011 Other branches in SK, D No options: the operating licence of the insurer is valid for all Member States, including FOS/FOE activities Supervisory authority: National Bank of Hungary Supervision of banking and insurance sector No right to deny registration of the branch office No prudential supervision, only consumer protection („home country control”) Member of MABISZ and National Bureau – continuous monitoring Problem: all important decisions are made in Bucharest

4. Financial recovery Decision of 27/08/2015 of RO FSA end of financial recovery (KPMG) establishing the insolvency triggering the bankruptcy proceedings (winding-up) and withdrawal of the licence of ASTRA ASTRA ceased operations in September – no claims paid Ex lex situation: between the withdrawal of the licence and winding-up The guarantee funds cannot intervene The contracts are still in force

5. Insurance contracts Contracts in force after withdrawal the licence Termination: only by mutual consent MTPL law amendment: contracts terminated by taking out new MTPL policies Claims Claims after the withdrawal of licence: registered by MABISZ Claims registered by ASTRA before: MABISZ is competent according to law, but all claim/cover documents are at the FGA All claims have to be reported to the FGA (in Romanian), and then to the liquidator

6. Guarantee schemes RO: FGA HU: Insolvency Fund Constructive, proactive approach Cooperation, common communication with the National Bank Assistance to FGA in claims handling Home Country Control principle What if there will be no winding-up at all? EU regulation inadequate for such occurrences Insurance Guarantee Schemes (IGS) process Commission White Paper (2010): proposes a directive to ensure that IGS exist in all EU countries hopefully catalysed by the ASTRA case

7. Association Motor Insurance Claims Guarantee Fund Insolvency Fund Green Card Bureau Compensation Body