The draft act, put up for public debate Wednesday, introduces a unitary formula to estimate damages to be paid by insurers that issue natural disaster insurance policies.
The new formula is similar to one applied by the European Insurance and Occupational Pensions Authority (EIOPA) and used in the Quantitative Impact Study 5 (QIS 5).
The new formula may determine the capital needed by insurers to cover losses caused by earthquake and floods, considering estimations regarding premiums underwritten on this segment and reinsurance programs.
The draft normative act is important for insurers operating in Romania, as it helps implement the principles required by Solvency II, meant to harmonize insurance regulations in the European Union, said CSA president Constantin Buzoianu.