The pool of insurance will implement a system that will allow for risks to be covered through a single home insurance policy.
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.
Homeowners are required to take out insurance against earthquakes, landslides and floods. The yearly premium for the mandatory policy sold by PAID is EUR10-20.
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%.
In January-July, PAID’s portfolio decreased by about 330,000 contracts, to 246,003.