PAID’s portfolio rose 49% to 303,708 insurance policies in September, for the first time in the last 13 months.
The increase in PAID’s portfolio in September is due to the enforcement of a new order issued by Romania’s insurance regulator CSA. The order sets that, starting September 1, homeowners holding voluntary home insurance against earthquakes, landslides and floods must conclude mandatory home insurance policies when their voluntary insurance policies expire. Also, starting September 1, Romanian insurers are allowed to issue voluntary home insurance policies only for sums higher than those covered by mandatory home insurance policies, of EUR10,000 and EUR20,000 depending on the type of building.
In the first eight months of 2012, PAID’s portfolio fell 60%, to 202,744 contracts, compared to 507,695 contracts on December 31, 2011 and a maximum 821,493 contracts in August 2011.
Under Law 260/2008, homeowners are required to take out insurance against earthquakes, landslides and floods. The yearly premium for the mandatory policy sold by PAID is EUR10-EUR20.
Set up in September 2009, PAID is a joint stock insurance-reinsurance company that manages the risk fund meant for paying damages in case of natural disasters. Its major shareholders are Astra – 15%, Groupama Asigurari – 15%, Platinum – 15% and Generali Romania – 11%. In addition, ABC Asigurari, Carpatica Asig, Certasig, City Insurance, Credit Europe Asigurari, Euroins and Grawe Romania each own 5.5%.